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]

May 5, 2021 Conduent Q1 2021 Earnings Results 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 stat ...

Financial Data and Key Metrics Changes - Revenue for Q1 2021 was over $1 billion, down 2.2% year-over-year, primarily due to lost business from prior years, partially offset by increased volumes and new business ramp [35][36] - Adjusted EBITDA for the quarter was $115 million, up 19.8% year-over-year, with an adjusted EBITDA margin of 11.2%, an increase of 210 basis points compared to Q1 2020 [36][39] - The net annual recurring revenue (ARR) activity metric was $87 million for the trailing 12 months ending Q1, indicating a positive trend in sales and client retention [14][55] Business Line Data and Key Metrics Changes - Commercial revenue declined by 8% in Q1, primarily due to lost business from prior years and lower volumes due to COVID-19, with adjusted EBITDA declining 11.4% [37] - Government business grew by 9.7%, driven by COVID-19 related volumes in government payments and new business ramp, with adjusted EBITDA increasing by 19.5% [38] - Transportation segment revenue declined by 2.6%, but adjusted EBITDA increased by 58%, driven by a temporary item positively impacting revenue mix and cost savings [39] Market Data and Key Metrics Changes - The addressable market in the Commercial segment is $146 billion, with ongoing investments in automation and digitization expected to improve margins and capture market share [25] - The government market opportunity is nearly $30 billion, with strong interest in new offerings around fraud tools and payment innovations [28] - The transportation market opportunity is about $11 billion, with potential for geographic expansion and entry into the commercial marketplace [29] Company Strategy and Development Direction - The company aims to pivot towards growth by focusing on operational efficiency, talent acquisition, and enhancing client relationships [5][30] - Investments in technology and infrastructure are expected to improve service delivery and client retention, with a focus on automation and data center optimization [22][25] - The company is exploring tuck-in acquisitions to enhance technology capabilities and drive margin expansion [74][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving year-over-year revenue growth in Q2 2021, driven by government stimulus and a favorable comparison to Q2 2020 [53][54] - The company anticipates a full-year revenue range of $4.05 billion to $4.15 billion, with an adjusted EBITDA margin between 11% and 11.5% [47] - Management highlighted the importance of retaining existing clients while also pursuing new business opportunities to drive growth [63] Other Important Information - The company reported a healthy balance sheet with $399 million in cash and approximately $743 million of capacity under the revolver [42] - Adjusted free cash flow was a use of $33 million for the quarter, an improvement of $68 million compared to Q1 2020 [45] - The company is focused on improving its culture and associate engagement, having been recognized for its global company culture [11] Q&A Session Summary Question: What were the drivers behind the sequential increase in ARR this quarter? - The increase in ARR was attributed to more shorter-term deals and a significant amount of add-on business, indicating a positive trend for 2021 and 2022 [50][51] Question: Are customers more willing to give more business due to improved service levels? - There is increased receptivity to dialogue with clients, driven by significant improvements in technology stability and service delivery [56][58] Question: What areas are standing out as good opportunities for returning to growth? - Strong opportunities were noted in the healthcare sector, with ongoing implementations and a new leader expected to drive further growth [66][67] Question: How does the company plan to close the growth gap versus market growth? - The company aims to achieve long-term targets through efficiency improvements, partnerships, and potential tuck-in acquisitions [73][74]

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, 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 ________________________________________________ ...

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, 2020 ☐ 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 ...

Financial Performance - Conduent's adjusted revenue for FY 2020 was $4163 million, a decrease of 6% year-over-year[5,10] - The adjusted EBITDA for FY 2020 was $480 million, with a margin of 115%, up 40 bps year-over-year[5,10] - Adjusted free cash flow for FY 2020 was $145 million, representing 30% of adjusted EBITDA[5,16] - The company anticipates revenue between $4000 million and $4150 million for FY 2021[21] - The adjusted EBITDA margin is expected to be between 110% and 115% for FY 2021[21] - Adjusted free cash flow is projected to be approximately 20% of adjusted EBITDA in FY 2021[21] New Business and Retention - New business TCV signings for FY 2020 reached $1934 million, a 94% increase compared to 2019[5] - Net ARR activity for Q4 2020 (TTM) was $95 million[6] Segment Performance - Commercial sector revenue declined by 79% year-over-year, impacted by approximately $158 million due to COVID-19[12] - Government sector revenue increased by 14% year-over-year, including approximately $149 million from COVID-19 related activities[12] - Transportation sector revenue decreased by 93% year-over-year, with approximately $76 million impact from COVID-19[12]

Financial Data and Key Metrics Changes - In 2020, revenue was $4.16 billion, and adjusted EBITDA was $480 million, equating to a margin of 11.5% for the year [12][28] - Q4 revenue was just over $1 billion, with an adjusted EBITDA margin of 12.6% [12] - Excluding COVID impacts, revenue would have declined 4.1% in 2020, and Q4 revenue would have declined just 0.5% compared to 2019 [12][28] - Adjusted EBITDA for the full year was down 2.6% year-over-year, while the adjusted EBITDA margin increased by 40 basis points compared to 2019 [29] Business Line Data and Key Metrics Changes - Commercial revenue declined 9.3% for the year, primarily due to COVID impacts of approximately $158 million [30] - Government business grew by 1.4%, driven by approximately $149 million of revenue related to COVID volumes [31] - Transportation segment revenue declined by 7.9%, primarily driven by a $76 million negative impact from COVID-19 [32] Market Data and Key Metrics Changes - The global business services market has seen increased activity, with clients shifting work to global providers capable of secure remote delivery [13] - TCV signings for the year reached $1.9 billion, a 94% increase compared to 2019 [14] Company Strategy and Development Direction - The company aims to achieve growth, efficiency, and quality through improvements in people, processes, and technology [19][25] - 2021 priorities will focus on continuing the improvement journey established in 2020, with an emphasis on client value and operational efficiency [24][25] Management Comments on Operating Environment and Future Outlook - Management expects COVID to have an overall negative impact on the business in 2021, similar to 2020, but anticipates improvement as the year progresses [42] - The company is optimistic about the demand environment, with a stronger pipeline compared to the previous year [44] Other Important Information - The company ended the year with $458 million in cash and strong free cash flow performance [34] - Adjusted free cash flow was $145 million for the year, an $85 million increase over 2019 [36] Q&A Session Summary Question: Impact of Fed stimulus on 1Q and full-year outlook - Management expects a negative impact from COVID on the top line again this year, with Q1 revenue expected to decline by about 3% to 4% [42] Question: Update on demand environment and pipeline by business segment - The pipeline has increased by $2 billion to $3 billion compared to last year, with more outsourcing activity across segments, particularly in healthcare [44] Question: Clarification on one-time versus recurring trends in 2021 - Adjusting for COVID impacts, the Transportation segment would have shown growth, and some one-time items in Commercial should not repeat [48] Question: Timeline for organic constant currency positive growth - Management is confident that vectors for growth are aligned for 2022, but timing remains unpredictable due to various factors [52] Question: Factors affecting revenue growth guidance - High-end revenue growth could come from increased government volumes and faster ramping of new business signings [64]

Conduent Investor Deck November 2020 Cautionary Statements Forward-Looking Statements This document contains "forward-looking statements", as defined in the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. The words "anticipate," "believe," "estimate," "expect," "plan," "intend," "will," "aim," "should," "could", "may," "continue to," "if," "growing," "projected," "potential," "likely," and similar expressions, as they relate to us, are intended to identify forward-loo ...