Peter Altabef Chair & Chief Executive Officer Deb McCann Chief Financial Officer U unisys FEBRUARY 18, 2025 Disclaimer Forward-Looking Statements Fourth Quarter & Full-Year 2024 Financial Results This presentation contains forward Hooking statements within the meaning of Section 274 of the Seurities A.d. of 1933, asamanded, Section 21E of the Securities Embange Ad and the Pinete-Securities Litigation Reform Act of 1958. Unisys cautions readers that the assumptions forming the basis for forward-kooling state ...

Financial Data and Key Metrics Changes - The fourth quarter revenue was $545 million, down 2.2% year-over-year as reported and 1.5% in constant currency [36] - Full year revenue was $2 billion, down 0.3% on both a reported and constant currency basis [37] - Non-GAAP operating profit for the full year was $176 million, representing an 8.8% margin, up 180 basis points year-over-year [9] - Free pension free cash flow nearly doubled to $82 million in 2024, with full year free cash flow reaching $55 million compared to negative $5 million last year [56][57] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue declined 8.2% year-over-year to $128 million in Q4, with full year revenue down 4.2% to $524 million [38] - Cloud Applications and Infrastructure (CA&I) revenue declined 5.2% year-over-year to $132 million in Q4, with full year revenue down 0.8% to $527 million [41] - Enterprise Computing Solutions (ECS) revenue increased 6.2% year-over-year to $209 million in Q4, with full year revenue up 1.3% to $651 million [43] Market Data and Key Metrics Changes - New Business Total Contract Value (TCV) was approximately $220 million in Q4, up 24% compared to the prior year period, with full year new business TCV at approximately $790 million, up 29% compared to 2023 [11] - The company exited the year with a backlog of $2.8 billion compared to $3 billion a year ago [46] Company Strategy and Development Direction - The company is raising its L&S revenue expectations to approximately $390 million in 2025 and $400 million in 2026, reflecting a $25 million annual revenue increase from previous expectations [10] - The focus for 2025 includes investments in AI-enabled solutions, application services, and the ClearPath Forward 2050 strategy [22][30] - The company aims to streamline operations and enhance cross-selling opportunities through a centralized application factory [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory in 2025, driven by strong new business signings and expected recovery in client volumes [80][82] - The company anticipates a positive inflection in Ex-L&S revenue growth in 2025, supported by backlog conversion and an expected uptick in the PC refresh cycle [81][84] - Management highlighted the importance of maintaining a strong cash balance while improving free cash flow and reducing legal and environmental payments [65][66] Other Important Information - The company received multiple leader designations from reputable firms in various service areas, validating its investments in innovation and market positioning [20][21] - The company is focusing on workforce optimization initiatives to enhance productivity and minimize external hiring [32] Q&A Session Summary Question: Insights on Ex-L&S business growth trajectory - Management indicated confidence in growth due to strong new business signings and backlog conversion, with expectations for a recovery in client volumes [80][84] Question: Free pension free cash flow improvement and margin levers - Management confirmed expectations for gross margin improvement driven by higher-margin solutions and operational efficiencies, alongside SG&A reductions [88][97] Question: Details on L&S revenue uptick - Management noted that the uptick is broad-based, driven by increased client consumption and longer contract durations, particularly in the context of AI and modernization efforts [108][110] Question: Timing of application services restructuring - Management clarified that the restructuring was planned as part of a broader strategy to leverage existing capabilities and enhance industry focus [115]

Group 1 - Unisys reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.51 per share a year ago, representing an earnings surprise of 65% [1] - The company posted revenues of $545.4 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.30%, and down from $557.6 million year-over-year [2] - Unisys has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates three times as well [2] Group 2 - The stock has gained approximately 6.2% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $516.3 million, and for the current fiscal year, it is $0.61 on revenues of $2.1 billion [7] Group 3 - The Computers - IT Services industry, to which Unisys belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The current estimate revisions trend for Unisys is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Revenue Performance - Full-year revenue for 2024 was $2,008.4 million, a decrease of 0.3% year over year, meeting the company's guidance[4] - Fourth quarter revenue declined 2.2% year over year, with Ex-L&S revenue down 4.7% year over year, primarily due to lower volume with existing clients[7] - Total revenue for Q4 2024 was $545.4 million, a decrease of 2.0% from $557.6 million in Q4 2023[33] - Revenue for Q4 2024 was $545.4 million, slightly down from $557.6 million in Q4 2023, while total revenue for the year was $2,008.4 million compared to $2,015.4 million in 2023[50] Profitability Metrics - Full-year gross profit margin improved to 29.2%, up 180 basis points year over year; Ex-L&S gross profit margin increased to 17.6%, an improvement of 250 basis points[4] - Operating profit margin for the full year 2024 improved to 4.8%, an increase of 100 basis points year over year[4] - Non-GAAP operating profit for the year ended December 31, 2024, was $97.4 million, compared to $76.9 million in 2023, reflecting a significant improvement[33] - The gross profit margin for the total revenue in Q4 2024 was 32.1%, slightly down from 32.5% in Q4 2023[36] - Adjusted EBITDA for Q4 2024 was $91.4 million, representing 16.8% of revenue, compared to 18.0% in Q4 2023[50] - Non-GAAP operating profit for Q4 2024 was $63.3 million, with a non-GAAP operating profit margin of 11.6%, compared to 11.5% in Q4 2023[50] - The operating profit for Q4 2024 was $48.6 million, an increase from $44.0 million in Q4 2023, resulting in an operating profit margin of 8.9%[50] Cash Flow and Financial Health - Free cash flow for the full year 2024 nearly doubled to $82 million, significantly improving from a negative $4.5 million in 2023[3] - Free cash flow for 2024 was $55.3 million, compared to a negative free cash flow of $(4.5) million in 2023[46] - Net cash provided by operating activities increased from $74.2 million in 2023 to $135.1 million in 2024, a growth of approximately 82.1%[41] - The company reported a consolidated net income of $30.0 million for Q4 2024, a recovery from a net loss of $165.3 million in Q4 2023[33] Business Growth and Contracts - New Business Total Contract Value (TCV) for 2024 reached $791 million, representing a 29% increase year over year driven by new logo signings[4] - Total Contract Value (TCV) for new business was highlighted as a key growth driver, although specific figures were not disclosed[24] - The company anticipates revenue growth in 2025, with a focus on artificial intelligence adoption and innovation[24] - The company expects 2025 revenue growth in constant currency to be between 0.5% and 2.5%, with a non-GAAP operating profit margin guidance of 6.5% to 8.5%[18] Balance Sheet and Assets - Total assets decreased from $1,965.4 million in 2023 to $1,872.3 million in 2024, a decline of approximately 4.7%[38] - Total current liabilities decreased from $650.9 million in 2023 to $628.0 million in 2024, a reduction of approximately 3.5%[38] - Long-term debt remained relatively stable, decreasing slightly from $491.2 million in 2023 to $488.2 million in 2024[38] - Goodwill decreased from $287.4 million in 2023 to $247.9 million in 2024, a decline of approximately 13.8%[38] - Cash, cash equivalents, and restricted cash at the end of the period were $390.6 million, down from $396.7 million in 2023[41] Challenges and Impairments - The company continues to face challenges related to foreign currency fluctuations impacting revenue from international operations[24] - The company experienced a goodwill impairment of $39.1 million for the year ended December 31, 2024[50] - Consolidated net loss improved from $(427.1) million in 2023 to $(193.2) million in 2024, representing a reduction of about 54.7%[41] - Non-GAAP net income attributable to Unisys Corporation for 2024 was $32.1 million, down from $41.7 million in 2023, a decrease of about 23.0%[44] - Diluted earnings per share on a GAAP basis improved to $0.41 in 2024 from $(2.42) in 2023[44]

Core Insights - Unisys Corporation exceeded its profitability guidance and met its revenue guidance for 2024, showing significant improvements in operating and free cash flow year over year [3][8][17] Financial Performance - Fourth quarter 2024 revenue was $545.4 million, a decline of 2.2% year-over-year, while full-year revenue was $2,008.4 million, down 0.3% year-over-year [5][8] - Excluding License and Support (Ex-L&S) revenue for Q4 2024 was $393.7 million, a decrease of 4.7% year-over-year, and for FY24 it was $1,576.9 million, down 0.6% year-over-year [5][6] - License and Support (L&S) revenue for Q4 2024 was $151.7 million, an increase of 5.1% year-over-year, and for FY24 it was $431.5 million, up 0.6% year-over-year [5][6] - Gross profit margin for FY24 improved to 29.2%, up 180 basis points year-over-year, while Ex-L&S gross profit margin improved to 17.6%, an increase of 250 basis points year-over-year [8][10] Cash Flow and Profitability - Full-year operating cash flow was $135.1 million, compared to $74.2 million in 2023, and free cash flow was $55.3 million, compared to a negative $4.5 million in 2023 [8][13] - Pre-pension and postretirement free cash flow nearly doubled to $82 million for the full year [3][8] Business Growth and Contracts - The company signed 29% more New Business Total Contract Value (TCV) driven by new logo signings, totaling $791 million for FY24 [3][8] - Total company TCV for FY24 was $1,946 million, a decline of 11% year-over-year, primarily due to the timing of renewals [14] Segment Performance - Digital Workplace Solutions (DWS) revenue for Q4 2024 was $128.2 million, down 7.9% year-over-year, while Cloud, Applications & Infrastructure Solutions (CA&I) revenue was $132.1 million, down 4.9% year-over-year [9][11] - Enterprise Computing Solutions (ECS) revenue increased by 2.9% year-over-year to $208.9 million in Q4 2024, driven by software license renewals [12] Guidance for 2025 - The company issued guidance for 2025, projecting revenue growth in constant currency of 0.5% to 2.5% and a non-GAAP operating profit margin of 6.5% to 8.5% [17][18]

Core Insights - Unisys has introduced a new multi-modal route optimization (MMRO) module aimed at enhancing the performance and cost management of freight companies [1][2] - The MMRO module analyzes various data points, including cargo details, weather data, and historical performance, to recommend optimal routes for freight forwarders and third-party logistics companies [2][3] - The solution is designed to address the industry's primary concern of transit delays, ultimately improving on-time deliveries and customer satisfaction [2][3] Company Overview - Unisys is a global technology solutions company that provides a range of services including cloud, AI, digital workplace, logistics, and enterprise computing [5] - The MMRO module is the second part of Unisys' Logistics Optimization solution, following the successful launch of a capacity optimization module in 2023 [3] - The company has a long-standing history of supporting the logistics market through its various management solutions [3]

Core Insights - Unisys has been recognized as a global leader in ISG's 2024 Advanced Analytics and AI Services Provider Lens™, excelling in three key areas: Advanced Business Intelligence and Reporting Modernization Services, Data Science and AI Services – Midsize, and Data Modernization Services – Midsize [1][2] Company Highlights - Unisys is committed to pioneering generative AI solutions that deliver high-impact results while ensuring security, compliance, and data privacy [2] - The company emphasizes the importance of leveraging data as a strategic asset to drive growth, innovation, and value for stakeholders [2] - Unisys promotes responsible data usage by balancing advanced AI capabilities with ethical data stewardship, enhancing operational clarity in complex digital environments [3] Service Offerings - Enhanced BI reporting and collaboration are key features, ensuring insights are accessible and fostering a data-driven decision-making culture [6] - The transformation of legacy systems into modern, cloud-based platforms is a significant focus, addressing the evolving demands of the digital landscape [6] - Unisys provides a range of innovative solutions, including machine learning operations (MLOps) and virtual assistants, showcasing adaptability and leadership in AI advancements [6]

CHICAGO and BLUE BELL, Pa., Feb. 4, 2025 /PRNewswire/ -- Unisys (NYSE: UIS), a leading global technology solutions provider, has joined the Chicago Quantum Exchange (CQE), launching a partnership aimed at driving industry-specific applications for quantum technology, developing top-tier quantum talent, and strengthening the Illinois-Wisconsin-Indiana quantum ecosystem.Unisys brings extensive expertise in quantum solutions and services across logistics, meteorology, financial modeling, and cryptography, cont ...

BLUE BELL, Pa., Jan. 30, 2025 /PRNewswire/ -- Unisys (NYSE: UIS) announced it will release its fourth-quarter and full-year 2024 financial results on Tuesday, February 18, 2025, after the close of trading on the New York Stock Exchange.Unisys will host a conference call with the financial community on Wednesday, February 19, 2025, at 8 a.m. EST to discuss the results.The company will offer a live, listen-only conference call webcast on the Unisys Investor Website at www.unisys.com/investor. In addition, dom ...

Unisys enables Finnair Cargo to strengthen its digital presence, streamline operationsand reach a new customer base BLUE BELL, Pa., Jan. 27, 2025 /PRNewswire/ -- Unisys (NYSE: UIS) announces the addition of Finnair Cargo – a leading global air cargo carrier specializing in fast and high-quality transport between Asia, Europe, and North America – to its Cargo Portal Services (CPS) platform. This strategic collaboration provides enhanced access and visibility to Finnair's cargo destinations, capacity and rout ...