Conduent Investor Deck May 2022 Cautionary Statements Forward-Looking Statements This document contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "estimate," "expect," "plan," "intend," "will," "aim," "should," "could," "forecast," "target," "may," "continue to," "if," "growing," "projected," "potential," "likely," and similar expressions, as they relate to us, are intended to identify forwardlooking statements, but th ...

Conduent, Inc. (NASDAQ:CNDT) Q1 2022 Earnings Conference Call May 3, 2022 5:00 PM ET Company Participants Giles Goodburn - VP, Corporate FP&A and IR Clifford Skelton - President, CEO & Director Stephen Wood - EVP, CFO & Principal Accounting Officer Conference Call Participants Puneet Jain - JPMorgan Chase & Co. Zachary Ajzenman - Cowen and Company Operator Greetings, and welcome to the Conduent First Quarter 2022 Earnings Announcement. [Operator Instructions]. It is now my pleasure to introduce your host, G ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q _______________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37817 CONDUENT INCORPORATED ________________________________________________ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________ FORM 10-K _________________________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |--------------------------------------------------------------- ...

Conduent Inc. (NASDAQ:CNDT) Q4 2021 Results Conference Call February 16, 2022 5:00 PM ET Company Participants Giles Goodburn - VP, IR Cliff Skelton - President and CEO Steve Wood - CFO Conference Call Participants Shannon Cross - Cross Research Puneet Jain - JPMorgan Bryan Bergin - Cowen Operator Greetings. Welcome to the Conduent Q4 2021 Earnings Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Giles Goodburn, ...

Conduent Inc. (NASDAQ:CNDT) Q3 2021 Earnings Conference Call November 4, 2021 5:00 PM ET Company Participants Giles Goodburn - Vice President of Investor Relations Cliff Skelton - President, Chief Executive Officer & Director Steve Wood - Executive Vice President & Chief Financial Officer Conference Call Participants Shannon Cross - Cross Research Puneet Jain - JPMorgan Ashwin Shirvaikar - Citigroup Operator Greetings, and welcome to Conduent's Third Quarter 2021 Earnings Results Conference Call. At this ti ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q _______________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37817 CONDUENT INCORPORATED ____________________________________________ ...

Financial Data and Key Metrics Changes - Conduent's revenue for Q2 2021 was $1.26 billion, up 1% year-over-year, marking the first quarter of year-over-year revenue growth since the spin-off in January 2017 [8][20] - Adjusted EBITDA was $128 million, equating to a 12.5% margin, which is an increase of 170 basis points year-over-year [8][21] - New business sales reached $775 million in total contract value, up 24% compared to the previous high sales quarter of Q2 2020 [8][10] - Annual recurring revenue (ARR) for Q2 2021 was $115 million, up 10% year-over-year [10] Business Line Data and Key Metrics Changes - The Commercial segment revenue declined by 3.3%, while adjusted EBITDA increased by 4% with a margin of 10.7%, up 70 basis points year-over-year [22] - Government segment revenues grew by 2.1%, driven by stimulus volumes and new business ramp, with adjusted EBITDA increasing by 23% and margins improving by 590 basis points [23] - Transportation segment revenue grew by 12.1%, but adjusted EBITDA decreased by 13.8%, with a margin of 13.5%, down 410 basis points year-over-year [24] Market Data and Key Metrics Changes - The Government Payments business saw increased volumes due to stimulus-related activities, contributing to overall revenue growth [20] - The Transportation segment signed a significant 10-year $178 million deal with the UK Department of Transport, indicating strong market demand [12] Company Strategy and Development Direction - The company is focused on refinancing its debt, which remains a top priority for 2021, with expectations to complete this in the coming months [18][27] - Conduent is investing in AI and automation technologies to enhance its service offerings and maintain competitiveness in the market [51][52] - The company is optimistic about the second half of 2021, with a strong sales pipeline and improved operational performance [14][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery and growth trajectory, despite potential headwinds from the pandemic and legacy losses [48] - The company anticipates a normalization of adjusted EBITDA margins in Q4 2021 as government stimulus effects taper off [30][31] - Management highlighted the importance of improving sales performance and retention as key drivers for future growth [42][49] Other Important Information - Conduent received recognition as Supplier of the Year from GM, reflecting its operational excellence [15] - The company ended the quarter with $403 million in cash and a net leverage ratio of two turns, indicating a healthy balance sheet [26] Q&A Session Summary Question: Can you talk about Commercial and what's going on there in terms of lost business versus growth? - Management noted that while Commercial sales lagged behind Government and Transportation, they expect a strong Q3 and are seeing improvements in net ARR metrics [34][36] Question: What is driving the add-on business growth? - The growth in add-on business is attributed to increased client confidence and improved account management strategies [39][40] Question: How much of the growth is due to market growth versus improved win rates? - Management indicated that improved performance and retention are key factors, rather than overall market growth [42][43] Question: How are you responding to industry peers investing in automation and AI? - The company is also investing in AI and automation incrementally and is exploring adjacent opportunities for potential M&A [51][52] Question: Can you characterize clients' willingness to sign deals currently? - Management observed an increasing propensity to buy, particularly in the public sector, with consistent demand for RFPs [56][57] Question: Which geographies are under-penetrated and present attractive opportunities? - The Transportation business sees significant international opportunities, particularly in Europe and South America [58]

Financial Performance - Revenue for Q2 2021 was $1,026 million, a slight increase from $1,016 million in Q2 2020, while total revenue for the six months ended June 30, 2021, was $2,054 million, down from $2,067 million in the same period last year[10]. - Net income for Q2 2021 was $12 million, compared to a net loss of $51 million in Q2 2020, indicating a significant improvement in profitability[10]. - Basic earnings per share for Q2 2021 was $0.05, recovering from a loss of $0.25 per share in Q2 2020[10]. - Total operating costs and expenses decreased to $1,007 million in Q2 2021 from $1,080 million in Q2 2020, reflecting a cost reduction strategy[10]. - The company reported a comprehensive income of $15 million for Q2 2021, compared to a loss of $47 million in the same quarter last year[12]. - Total consolidated revenue for Q2 2021 was $1,026 million, a slight increase from $1,016 million in Q2 2020, representing a growth of 1%[37]. - Net income for Q2 2021 was $1 million, a significant improvement from a net loss of $100 million in Q2 2020[19]. - Adjusted EBITDA for Q2 2021 was $128 million, compared to $110 million in Q2 2020, reflecting a growth of 16%[52]. - The company reported a total operating costs and expenses of $2,044 million in Q2 2021, down from $2,182 million in Q2 2020[114]. - The effective tax rate for Q2 2021 was 38.2%, up from 20.3% in Q2 2020[130]. Cash and Liquidity - Cash and cash equivalents as of June 30, 2021, were $450 million, indicating a stable liquidity position[17]. - Cash provided by operating activities was $103 million, compared to cash used in operating activities of $118 million in the same period last year[19]. - Cash, cash equivalents, and restricted cash at the end of the period were $403 million, down from $437 million at the end of Q2 2020[19]. - As of June 30, 2021, total cash and cash equivalents were $397 million, down from $450 million as of December 31, 2020[160]. - The company believes its cash on hand, projected cash flow from operations, and revolving line of credit will meet business obligations for at least the next twelve months[162]. Debt and Liabilities - Long-term debt remained significant at $1,420 million, highlighting the company's leverage position[17]. - Payments on debt totaled $79 million in Q2 2021, compared to $28 million in the same quarter last year[19]. - As of June 30, 2021, the Company had long-term debt of $1,340 million, a decrease from $1,420 million as of December 31, 2020[59]. - The Company redeemed all previously outstanding $34 million Senior Notes due 2024 on May 1, 2021, incurring a $2 million loss on extinguishment of debt[59]. - Total debt outstanding as of June 30, 2021, was $1.4 billion, with $89 million due within one year[161]. Revenue Segments - Revenue from Commercial Industries segment was $503 million in Q2 2021, down from $520 million in Q2 2020, a decrease of 3%[50]. - Government Services segment revenue increased to $338 million in Q2 2021 from $331 million in Q2 2020, a growth of 2%[50]. - Transportation segment revenue rose to $185 million in Q2 2021, compared to $165 million in Q2 2020, an increase of 12%[50]. - Commercial Industries revenue for Q2 2021 decreased to $503 million, a decline from $520 million in Q2 2020, representing a 3.3% decrease[140]. - Government Services revenue for Q2 2021 increased to $338 million, up from $331 million in Q2 2020, reflecting a 2.1% increase[140]. - Transportation revenue for Q2 2021 was $185 million, compared to $165 million in Q2 2020, marking a 12.1% increase[140]. Operational Efficiency - The company continues to focus on improving efficiencies and reducing costs through its business process services[28]. - The company experienced increased volumes in its Government Services Solutions offering, primarily due to Federal stimulus payments[116]. - Unallocated costs for Q2 2021 increased due to higher employee costs, partially offset by efficiency initiatives[153]. Market Risks and Legal Matters - The ongoing impact of the COVID-19 pandemic continues to pose risks and uncertainties for future operations and financial results[2]. - The impact of the COVID-19 pandemic remains a consideration, with ongoing evaluations of estimates and assumptions affecting financial reporting[31]. - The company is involved in a class action lawsuit alleging violations of federal securities laws, with claims seeking unspecified monetary damages for the period from February 21, 2018, to November 6, 2018[78]. - The company is engaged in litigation with Cognizant Business Services Corporation, seeking damages in excess of $150 million due to alleged breaches of contract[83]. - The company continues to cooperate with federal and state agencies regarding various matters related to student loans, with potential for future legal actions[84]. - The company intends to vigorously defend itself against ongoing litigation and believes it has strong defenses against the claims made[80]. Business Growth - New business total contract value (TCV) signings reached $775 million in Q2 2021, a 24% increase year-over-year[108]. - Annual recurring revenue signings were $115 million in Q2 2021, a 10% increase compared to the prior year[108]. - The Company signed $775 million of new business in Q2 2021, a 24% increase compared to $623 million in Q2 2020[155]. - Total Contract Value (TCV) signings for the six months ended June 30, 2021, reached $1,131 million, a 19% increase from $947 million in the same period of 2020[156]. - The total new business pipeline at the end of June 30, 2021, was $21.0 billion, down from $22.0 billion at the end of June 30, 2020[159].

Company Overview - Conduent is a diversified Business Process Services, Customer Experience, and Transportation company serving thousands of clients across commercial and government sectors[6] - The company touches 75% of insured patients in the U S and other BPS services[6] - Conduent processes 8 7 million tolling transactions daily, representing over 40% of US tolling[6] - The company handles 200 million contact center interactions per year[6] Financial Performance and Metrics (Q1 2021) - Revenue was $1 028 million, a decrease of 2 2% year-over-year[26] - Adjusted EBITDA was $115 million, an increase of 19 8% year-over-year[26] - Adjusted EBITDA margin was 11 2%, up 210 bps year-over-year[26] - New business TCV signings were $356 million, up 10% year-over-year[26] - New business ARR signings were $95 million, up 67% year-over-year[26] - Net ARR Activity Impact (TTM) was $87 million[26] Market Opportunity - The company operates in a Total Addressable Market (TAM) of >$186 billion across its commercial, government and transportation categories[24]