Slides
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Unisys Presentation NEEDHAM GROWTH CONFERENCE JANUARY 13, 2026
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Disclaimer Forward - Looking Statements This presentation contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amende d, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward - loo king statements include many factors that are beyond Unisys’ ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and that TCV is based, in part, on the assumption that each of those contracts will continue for their full contracted term. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans ,” “believes,” “should” and similar expressions may identify forward - looking statements and such forward - looking statements are made based upon management’s current expectations, assumptions and beliefs as of this da te concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Forward - looking statements in this presentation include, but are not limited to, any projections or e xpectations of revenue growth, margin expansion, achievement of operational efficiencies and savings, expectations regarding the impacts of changes to our organizational structure, investments in our s olu tions and artificial intelligence adoption and innovation, TCV and Ex - L&S New Business TCV, the impact of new logo signings, backlog, book - to - bill, full - year 2025 revenue growth and profitability guidance, including constant currency revenue, Ex - L&S constant currency revenue growth, L&S revenue, non - GAAP operating profit margin, free cash flow generation and the assumptions and other expectations made in conn ection with our revised full - year 2025 financial guidance, expectations for full - year pre - pension free cash flow, expectations regarding our capital structure, plans for the removal of our pension liabili ties, the reduction of uncertainty and volatility of cash requirements, including pension contributions, our pension liability, debt extinguishment, future economic benefits from net operating losses and sta tem ents regarding future economic conditions or performance. Additional information and factors that could cause actual results to differ materially from Unisys’ expectations are contain ed in Unisys’ filings with the U.S. Securities and Exchange Commission (SEC), including Unisys’ Annual Reports on Form 10 - K and subsequent Quarterly Reports on Form 10 - Q, recent Current Reports on Form 8 - K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this presentation is representative as of the date of this presentation only and whi le Unisys periodically reassesses material trends and uncertainties affecting Unisys’ results of operations and financial condition in connection with its preparation of management's discussion and analy sis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, Unisys does not, by including this statement, assume any obligation to review or revise an y p articular forward - looking statement referenced herein in light of future events, except as required by applicable law. Non - GAAP Information This presentation includes certain non - GAAP financial measures that exclude certain items such as postretirement expense; debt e xtinguishment, certain legal and other matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters rela ted to previously disposed businesses; and cost - reduction activities and other expenses that the company believes are not indicative of its ongoing operations, as they may be unusual or non - recurring. The in clusion of such items in financial measures can make the company’s profitability and liquidity results difficult to compare to prior periods or anticipated future periods and can distort the v isi bility of trends associated with the company’s ongoing performance. Management also believes that non - GAAP measures are useful to investors because they provide supplemental information about the company’s financ ial performance and liquidity, as well as greater transparency into management’s view and assessment of the company’s ongoing operating performance. Non - GAAP financial measures are often provided and utilized by the company’s management, analysts, and investors to enhance comp arability of year - over - year results. These items are uncertain, depend on various factors, and could have a material impact on the company's GAAP results for the applicable period. These measures sho uld not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with U.S. GAAP. A reconciliation of these non - GAAP financial measures to the most directly com parable financial measures calculated and reported in accordance with GAAP can be found below except for financial guidance and other forward - looking information since such a reconciliation is not p racticable without unreasonable efforts as the company is unable to reasonably forecast certain amounts that are necessary for such reconciliation. This information has been provided pursuant t o t he requirements of SEC Regulation G.
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Our Strategy Capital Structure Appendix Agenda Unisys Overview
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Unisys Overview
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We Deliver Mission - Critical IT Solutions Operating within the ~$1.6T Global IT Services Market expected to grow at a ~8.4% CAGR from 2024 through 2029 1 End - to - End IT Support with intelligent workplace and field services that drive productivity Secure Enterprise with institutional experience to address new threats Digital Agility to enable smarter decisions & fuel growth Experience as a Service to evolve the digital workplace Intelligent Operations for transforming legacy platforms to hybrid / multi - cloud Accelerated Business Transformation leveraging AI - driven automation Next - Gen Compute leveraging industry, AI and quantum expertise Deep Data Expertise developed over decades serving key industries AI - Powered Innovation backed by data foundations and infrastructure readiness Cybersecurity Risk Data Governance Compute Diversity Financial ROI Future of Work Cloud Transformation Innovation & AI Application Modernization Employee Productivity Device Management Client Priorities Communication, Collaboration & Learning to transform how employees use technology and work together
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Our top 50 clients have been with us for more than 20 years on average and we serve some of the largest public sector, financial services, and commercial enterprises in the world We drive breakthroughs Associates Countries Partners ~ 16 K ~$ 2 B Engineers Clients ~ 8 K ~ 700 FY24 Revenue 50 + ~ 100 FY24 Free Cash Flow ~ $ 55 M FY24 Adjusted EBITDA ~$ 290 M Key Stats FY24 Revenue Mix Note: All figures are as of 4Q24 44% 29% 14% 13% US & Canada EMEA Asia Pacific Latin America 35% 33% 32% Commercial Public Sector Financial Services
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Our Portfolio of Offerings Cloud, Applications & Infrastructure Solutions Digital Workplace Solutions Enterprise Computing Solutions Cloud Consulting, migration, and managed services across multi - cloud environments including public and private clouds or hybrid workloads Cloud AI Establishing robust AI foundations and enabling AI adoption at scale Applications Development, migration, & modernization Data Modernizing, migrating, and managing data to enable analytics and unlock insights Cybersecurity To ensure architecture, applications and data in motion and at rest are secure Intelligent Workplace Enhanced Service Desk and Field Service solutions Unified Experience Management XLAs, experience monitoring software, automation, AI, and our Experience Management Office (XMO) Modern Device Management To remotely provision, track, manage and protect Workplace as a Service Solutions including device subscription services and enterprise service management Seamless Collaboration Collaboration tools and optimizing networks, platforms, and workspaces to enhance productivity ClearPath Forward ® A flexible collection of products and platforms that provide secure, scalable operating environments for high - intensity enterprise computing Specialized Services Services to manage and modernize infrastructure that runs our ClearPath Forward operating system Industry solutions Leveraging data, AI, advanced computing including for Air Cargo, Travel, Financial Services, and Public Sector clients Simplifying mission - critical IT at scale ~$100B TAM in 2024 / 5.5% 3 - yr CAGR 3 Focus on existing base Tech - Enabled Services (Ex - L&S) ( ~80 % of Revenue) 1 Software (L&S) (~20% of Revenue) 1 ~$600B TAM in 2024 / 12.7% 3 - yr CAGR 2 Consistent Revenue Recognition Revenue Growth / Margin Expansion Up - Front License Revenue / Support Over Term
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Differentiated by Stable, Profitable Software Revenue Base ClearPath Forward® (“License & Support”) Proprietary, h igh - intensity compute environments Decades of use in key industries Prioritizing security for sensitive client data Designed for powerful, secure, mission - critical transaction processing Certified to run wherever the client needs Including Financial Services, Public Sector, Travel & Transportation The only commercially available operating system to never have data compromised* Flexible deployment across infrastructure environments, including public cloud 73% 71% ~70% 2023 2024 2025E $429 $432 $430 2023 2024 2025E L&S REVENUE L&S GROSS MARGIN According to data from the National Institute of Standards and Technology (NIST).
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PUBLIC SECTOR/HIGHER EDUCATION FINANCIAL SERVICES TRAVEL AND TRANSPORTATION RETAIL AND CONSUMER GOODS MANUFACTURING OTHER Select Unisys Clients
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Select Strategic Unisys Partners Digital Workplace Cloud, Applications & Infrastructure Enterprise Computing Solutions Key Alliance Partners
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Solutions Being Recognized LEADER in Advanced Analytics and AI Services LEADER in Generative AI Services CHALLENGER in ServiceNow Ecosystem Partners RISING STAR in AI - Driven App Dev and Managed Services (NEW) CHALLENGER in Agentic AI Services (NEW) LEADER in Future of Work LEADER in Multi Public Cloud Services LEADER in Private/Hybrid Cloud – Data Center Services LEADER in Cybersecurity Solutions and Services LEADER in Worldwide Digital Workplace Services LEADER in European Human - First DWS LEADER in Global Outsourced Digital Workplace Services NICHE PLAYER in Hybrid Infrastructure Managed Services LEADER in DWS – Mid - Market Enterprises LEADER in Cloud Services for the Mid - Market (NEW) MAJOR CONTENDER in Digital Workplace Services MAJOR CONTENDER in Microsoft Modern Work Services (NEW) INNOVATOR in Hybrid Enterprise Cloud Services INNOVATOR in Multi - Sourcing Service Integration INNOVATOR in State and Local Government Services DISRUPTOR in Higher Education Digital Services (NEW) DISRUPTOR in Applied AI Services CHALLENGER in Cybersecurity Services LEADER in Digital Workplace Services LEADER in End - User Computing Services INNOVATOR in Application Modernization Services INNOVATOR in Data Center Managed Services MAJOR PLAYER in WW Managed Public Cloud Services MAJOR PLAYER in Application Modernization MAJOR PLAYER in Cloud Services – Higher Education MAJOR PLAYER in Cloud Services – NA State/Local Gov. LEADER in Outsourced Digital Workplace Services LEADER in Advanced Digital Workplace Services LEADER in Cloud Infrastructure Management Services LEADER in Cognitive & Self - Healing IT Infrastructure LEADER in Cyber Resiliency LEADER in Attack Surface Management (NEW) NEW – Unisys appeared in this report for the first time in 2025 – Unisys improved our rating in this report since 2021 DISRUPTOR in Cybersecurity Services (NEW) STRONG PERFORMER in AI Technical Services (NEW) TIME MAGAZINE • WORLD’S BEST COMPANIES OF 2025 • INDIA’S BEST EMPLOYERS OF 2025 NEWSWEEK 2025 GLOBAL TOP 100 MOST LOVED WORKPLACES® FORBES 2025 AMERICA’S BEST EMPLOYERS FOR ENGINEERS FINANCIAL TIMES BEST EMPLOYERS ASIA PACIFIC 2026 DELL TECHNOLOGIES AWARDS • 2025 GLOBAL ALLIANCES GROWTH PARTNER OF THE YEAR • 2025 AMERICAS EXPANSION PARTNER OF THE YEAR • 2025 APJ ACQUISITION PARTNER OF THE YEAR HDI GLOBAL SERVICE AND SUPPORT AWARDS 2025 BEST SERVICE IMPROVEMENT INITIATIVE Company Awards . Our solutions, our company, and our services are recognized by partners, analysts, advisors, and industry leaders.
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Our Strategy
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We have multiple opportunities to create solid value for Unisys stakeholders Our Opportunity Grow E x - L&S revenue Building awareness and recognition of our solutions & capabilities Accelerate growth rate Through higher - value solutions and leveraging AI to more rapidly scale solution delivery ClearPath Forward 2050 Invest in L&S ecosystem, unlock data & insights, and support client modernization Expand profitability Through delivery optimization , solution mix shift, and SG&A efficiencies Improve free cash flow conversion Lower environmental & restructuring payments, one - time environmental recovery, utilization of tax assets Sustain flexible capital structure Reducing leverage and pension deficit/liabilities to enable full removal of U.S. Qualified Defined Benefit Pension Plans
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Core Ex - L&S Growth Tenets Land & Expand Improving win rate with new logo, cross - selling to increase number of clients purchasing solutions from multiple Unisys segments, expanding geographies with existing base, and moving higher up the client tech eco - system . Enabling Emerging Technology Develop scalable, flexible, AI - embedded solutions by leveraging in - house capabilities, alliance partner tools and technology, and industry knowledge and enable enterprise AI adoption through specialized managed services . Elevating Awareness & Relevance Continue investment in go - to - market by deepening industry and technical sales, consultative thought leadership, solution - based lead generation, and relationships with industry analysts and third - party advisors who influence client decisions . Expanding Addressable Markets Expanding solution portfolio to address new opportunities and growing our market share with mid - market clients by leveraging our broad solutions, industry expertise, partner ecosystem, and agile delivery model to address skills gaps. Alliance Partners Deepen key OEM, hyper - scaler, and technology partnerships and forge new and deeper partnerships with emerging disruptors to ensure we are building, marketing, and co - selling with the partners that will enable us to continue bringing our clients the latest in emerging solutions. Modernizing the Edge Leverage scaled, central Application Factory and partner ecosystem to help clients modernize their application layers, adopt AI on the edge, and elevate customer and employee experience.
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ClearPath Forward 2050 Strategy Expanding and enhancing the ecosystem; strategy evolution is driven by stability of the existing base, market demand, and client needs Product & Platform Evolution Unlock & Protect Data Value • New product development to increase CPF workloads through re - patriation and consumption of existing client base • Enhancing Data Exchange to make CPF home for clients’ most valuable data • Continually strengthening security, e.g. Post Quantum Cryptography (PQC) • Continually enhancing core operating systems • Diversify compute capabilities (e.g. hybrid computing, cloud expansion) with unique Unisys IP and expanded partner ecosystem to cover broader range of technologies • Expanding modern language support (e.g. Python) • Enhance Unisys Industry Solutions Specialized Services & Support • Unisys Industry Solutions delivered as - a - service • Specialized services bridging client skills gaps • Application modernization and transformation via Unisys Application Factory • Advisory to support compute diversification including AI and quantum adoption
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How Unisys enables enterprise AI Strategy & Consulting High - impact business outcomes, security, and compliance at the center of our approach 3 1 4 2 Data Services Solutions Managed Services AI vision & strategy | Maturity & Readiness assessment | Roadmap development | Change management | Upskilling Data preparation & transformation | Governance & security | Data strategy | Data quality & analytics | Risk assessment Unique Unisys solutions | Partner - integrated solutions | Agents, accelerators and technology frameworks | Partner - focused services Operations & optimization | Application, cloud & security management | Datacenter management | Performance monitoring Our portfolio provides holistic ecosystem support for AI adoption
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Delivering gross margin expansion Higher value capabilities Incorporating generative AI, hyper - automation, quantum computing Aligned to future demand Solutions in areas growing faster than the broader IT services market Outcomes - based approach Allowing us to contract on the value we are creating for our clients Shift Mix into Higher Value Solutions Gross Margin Expansion Improve Efficiency with AI and Optimization Lower the cost of delivery through increased use of AI, automation and labor optimization Strategic account management centralized across Unisys touchpoints and improved contract enforcement Improve low margin accounts by getting them on a pathway of transformation with Unisys Targeting ~150bps annual Ex - L&S gross margin expansion (delivered >600bps expansion from 2022 to 2024) ClearPath 2050 Strategy To enhance and expand ecosystem of high - margin L&S solutions Upskill & Reskill Employees To enhance utilization and internal fulfillment for New Business growth
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Levers to Improve Free Cash Flow Working Capital Management Delivery & Operational Excellence Tax Asset Utilization Pension Risk Management Cap - Ex Lite Strategy Reducing Legal & Environmental Payments Enhancing Free Cash Flow Decline in environmental, certain legal, and cost reduction & other payments • $25M one - time cash payment received in July 2025 related to 4Q legal settlement that totaled $40M ($15M received in 4Q24) $11.2 $28.7 $16.9 $20.2 $5.8 $5.8 $5.5 $5.2 $5.7 $4.9 ($20.4) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25
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Capital Structure
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$M SEPTEMBER 30, 2025 2 SENIOR SECURED NOTES 1 $ 700.0 FINANCE LEASES AND OTHER DEBT 48.3 TOTAL DEBT EXCLUDING PENSION DEFICIT $ 748.3 ESTIMATED GLOBAL NET PENSION DEFICIT 2 ~$470 TOTAL DEBT $ 1,218.3 CASH $ 321.9 NET LEVERAGE EXCLUDING PENSION DEFICIT $ 426.4 NET LEVERAGE $ 896.4 LTM ADJUSTED EBITDA $ 241.2 NET LEVERAGE RATIO EXCLUDING PENSION DEFICIT 1.8x NET LEVERAGE RATIO 3.7x Leverage Detail Represents face value of debt. As of September 30, 2025, based on management estimates.
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Strategic Capital Structure Objectives We continue to focus on the following objectives related to our capital structure and pension Maintain strong cash balances and liquidity Improve net leverage ratio and credit rating Reduce uncertainty and volatility of cash requirements, including pension contributions Reduce the size of the U.S. Qualified Defined Benefit (QDB) Pension Plans, and ultimately remove Maintain debt capacity for growth opportunities Institute a capital return program
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Strengthening our Capital Structure Unisys has taken meaningful strategic steps in its multi - year strategy to reduce and remove U.S. qualified defined benefit pension plan liabilities within three to five years Recent Debt Raise & Pension Actions Issued new $700M senior secured notes Extended asset - backed revolver maturity Contributed $250M to U.S. pension plans Reallocated U.S. QDB pension plans assets Retired existing $485M notes June 2025 September 2025 Transferred $320M in U.S. pension liabilities through annuity purchase contract First step in removing $600M in U.S. pension liabilities by year - end 2026 Benefits Cash flow accretive over next 5 years 1 Reduces GAAP pension deficit & contributions 3 - 5 year path to full removal of U.S. pension plans Mitigates pension volatility Enables further annuity purchase transactions Accelerated path to full removal, with next steps including: 1. Execute additional annuity purchases to reduce cost of full removal of U.S. qualified defined benefit pension plans 2. Increase capacity to fund cost of full removal
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Steps We Have Taken… © 2026 UNISYS CORPORATION. ALL RIGHTS RESERVED. 23 Issued new $700M Senior Secured Notes Refinanced $485M notes Extended Asset - Backed Revolver Maturity Contributed $250M to U.S. QDB Pension Plans Reallocated U.S. QDB Pension Plans Assets …Next Steps Increase Capacity to Fund Cost of Full Removal Execute Annuity Purchases to Reduce Cost of Full Removal of U.S. QDB Pension Plans 1 2
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Thank You Contact Us: Investor@Unisys.com
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Appendix
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Excluding License and Support (“Ex - L&S”) Revenue and Gross Profit $M 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 L&S REVENUE $ 136.9 $ 80.8 $ 67.1 $ 144.3 $ 429.1 $ 93.2 $ 82.1 $ 104.5 $ 151.7 $ 431.5 $ 71.1 $ 87.6 $ 83.0 EX - L&S REVENUE 379.5 396.0 397.5 413.3 1,586.3 394.6 396.1 392.5 393.7 1,576.9 361.0 395.7 377.2 REVENUE $ 516.4 $ 476.8 $ 464.6 $ 557.6 $ 2,015.4 $ 487.8 $ 478.2 $ 497.0 $ 545.4 $ 2,008.4 $ 432.1 $ 483.3 $460.2 L&S GROSS PROFIT $ 106.5 $ 52.4 $ 39.6 $ 112.8 $ 311.3 $ 64.8 $ 55.7 $ 74.7 $ 113.1 $ 308.3 $ 43.3 $ 60.3 $ 47.0 EX - L&S GROSS PROFIT 52.5 63.4 55.7 68.4 240.0 71.2 74.2 70.3 61.9 277.6 64.2 69.7 70.2 GROSS PROFIT $ 159.0 $ 115.8 $ 95.3 $ 181.2 $ 551.3 $ 136.0 $ 129.9 $ 145.0 $ 175.0 $ 585.9 $ 107.5 $ 130.0 $ 117.2 L&S GROSS PROFIT MARGIN 77.8% 64.9% 59.0% 78.2% 72.5% 69.5% 67.8% 71.5% 74.6% 71.4% 60.9% 68.8% 56.6% EX - L&S GROSS PROFIT MARGIN 13.8% 16.0% 14.0% 16.5% 15.1% 18.0% 18.7% 17.9% 15.7% 17.6% 17.8% 17.6% 18.6% GROSS PROFIT MARGIN 30.8% 24.3% 20.5% 32.5% 27.4% 27.9% 27.2% 29.2% 32.1% 29.2% 24.9% 26.9% 25.5% Note: Quarterly amounts may not sum to annual amounts due to rounding.
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Free Cash Flow Reconciliation $M 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 CASH (USED FOR) PROVIDED BY OPERATIONS $ 12.8 $ 42.5 ($ 4.1) $ 23.0 $ 74.2 $ 23.8 $ 2.7 $ 32.0 $ 76.6 $ 135.1 $ 33.3 ($ 316.2) $ 38.0 ADDITIONS TO MARKETABLE SOFTWARE (10.3) (11.0) (11.6) (13.1) (46.0) (13.2) (12.5) (11.0) (10.8) (47.5) (11.2) (12.4) (12.5) ADDITIONS TO PROPERTIES & OTHER ASSETS (10.0) (6.8) (10.0) (5.9) (32.7) (6.7) (8.7) (6.8) (10.1) (32.3) (8.9) (7.9) (5.6) FREE CASH FLOW ($ 7.5) $ 24.7 ($ 25.7) $ 4.0 ($ 4.5) $ 3.9 ($ 18.5) $ 14.2 $ 55.7 $ 55.3 $ 13.2 ($336.5) $ 19.9 PENSION AND POSTRETIREMENT FUNDING 16.4 14.7 10.2 6.7 48.0 7.7 4.7 8.6 6.1 27.1 9.4 278.2 30.6 PRE - PENSION AND POSTRETIREMENT FREE CASH FLOW $ 8.9 $ 39.4 ($ 15.5) $ 10.7 $ 43.5 $ 11.6 ($ 13.8) $ 22.8 $ 61.8 $ 82.4 $ 22.6 ($ 58.3) $ 50.5 DEBT EXTINGUISHMENT PAYMENTS - - - - - - - - - - - 4.0 0.2 CERTAIN LEGAL (RECEIPTS) PAYMENTS 2.1 10.9 7.4 9.7 30.2 1.4 1.2 (0.5) (6.8) (4.8) 1.0 0.8 (25.0) ENVIRONMENTAL MATTERS PAYMENTS 5.8 5.0 3.8 7.2 21.8 2.5 2.0 4.0 8.7 17.2 2.2 1.3 1.5 COST REDUCTION AND OTHER PAYMENTS, NET 3.3 12.8 5.7 3.3 25.0 1.9 2.6 2.0 3.3 9.8 2.5 2.8 3.1 ADJUSTED FREE CASH FLOW $ 20.1 $ 68.1 $ 1.4 $ 30.9 $ 120.5 $ 17.4 ($ 8.0) $ 28.3 $ 67.0 $ 104.6 $ 28.3 ($ 49.4) $ 30.3 Note: Quarterly amounts may not sum to annual amounts due to rounding.
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Adjusted EBITDA Reconciliation (LTM) $M 4Q24 1Q25 2Q25 3Q25 NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS CORPORATION $ 30.0 ($ 29.5) ($ 20.1) ($ 308.9) NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 0.5 (1.1) 0.1 (0.3) INTEREST EXPENSE, NET OF INTEREST INCOME OF $5.8, $5.7, $5.6 AND $4.7, RESPECTIVELY 1 2.4 2.5 2.6 13.5 PROVISION FOR INCOME TAXES 28.8 10.6 20.0 16.3 DEPRECIATION 10.9 9.4 10.1 9.5 AMORTIZATION 17.7 13.2 15.9 12.4 EBITDA $ 90.3 $ 5.1 $ 28.6 ($ 257.5) PENSION AND POSTRETIREMENT EXPENSE 11.1 21.9 22.0 242.9 GOODWILL IMPAIRMENT - - - 55.0 FOREIGN EXCHANGE (GAINS) LOSSES, NET 1,2 2. 4 (0.1) 0.5 3.7 LOSS ON DEBT EXTINGUISHMENT 1 - - 6.8 0.2 CERTAIN LEGAL MATTERS, NET 3 (39.2) (0.4) 0.7 0.7 ENVIRONMENTAL MATTERS 1 7.4 0.4 0.9 0.2 COST REDUCTION AND OTHER EXPENSES 4 9.7 3.7 0.1 - NON - CASH SHARE BASED EXPENSE 5.0 6.8 2.9 2.5 OTHER (INCOME) EXPENSE, NET ADJUSTMENT 5 4.7 2.8 (1.1) 0.5 ADJUSTED EBITDA $ 91.4 $ 40.2 $ 61.4 $ 48.2 REVENUE $ 545.4 $ 432.1 $ 483.3 $ 460.2 ADJUSTED EBITDA MARGIN 16.8% 9.3% 12.7% 10.5%
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Potential Economic Benefit of Tax Assets (as of December 31, 2024) $M DESCRIPTION NET DEFERRED TAX ASSETS 1 FUTURE AVAILABLE REDUCTIONS IN TAXABLE INCOME U.S. NOLS AND TAX CREDITS: NET OPERATING LOSS – FEDERAL & STATE $ 536 $1,617 TAX CREDITS 91 435 PENSION AND OTHER: PENSION 150 600 OTHER DEFERRED TAX ASSETS 120 479 TOTAL AVAILABLE U.S. $ 897 $3,131 NON - U.S. FOREIGN TAX ATTRIBUTES NET OPERATING LOSS – NON - U.S. $ 252 $ 969 PENSION AND OTHER – NON - U.S. 87 343 TOTAL AVAILABLE NON - U.S. $ 339 $ 1,312 TOTAL AVAILABLE $ 1,236 $ 4,443 VALUATION ALLOWANCE (1,168) TOTAL NET DEFERRED TAX ASSET $ 68
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Definitions of Non - GAAP Financial Metrics Non - GAAP operating profit – This measure excludes pretax pension and postretirement expense, pretax goodwill impairment charge and pretax charges or gain s a ssociated with certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated wi th certain legal proceedings, and cost - reduction activities and other expenses. EBITDA & adjusted EBITDA – Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated by starting with net income (loss) attr ib utable to Unisys Corporation common shareholders and adding or subtracting the following items: net income (loss) attributable to noncontrolli ng interests, interest expense (net of interest income), provision for (benefit from) income taxes, depreciation and amortization. Adjusted EBITDA further excludes pension a nd postretirement expense; goodwill impairment charge, foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional serv ice s and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; cost - reduction activ ities and other expenses; non - cash share - based expense; and other (income) expense adjustments. Non - GAAP net income (loss) and non - GAAP diluted earnings (loss) per share – These measures exclude pension and postretirement expense and charges or (credits) in connection with goodwill impairment , foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously dispose d b usinesses; and cost - reduction activities and other expenses. The tax amounts related to these items for the calculation of non - GAAP diluted earnings (loss) per share include the c urrent and deferred tax expense and benefits recognized under GAAP for these items. Free cash flow – Represents cash flow from operations less capital expenditures. Pre - pension and postretirement free cash flow (Pre - pension free cash flow) – Represents free cash flow before pension and postretirement contributions. Adjusted free cash flow – Represents free cash flow less cash used for pension and postretirement funding; debt extinguishment, certain legal matters r ela ted to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental ma tters related to previously disposed businesses; and cost - reduction activities and other payments.
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Definitions of Other Metrics License and Support (L&S) – Represents software license and related support services, primarily ClearPath Forward®, within the company's ECS segment. Excluding License and Support (Ex - L&S) – These measures exclude revenue, gross profit and gross profit margin in connection with software license and support services wi thin the company’s ECS segment. The company provides these measures to allow investors to isolate the impact of software license renew als , which tend to be significant and impactful based on timing, and related support services in order to evaluate the company’s business outside of these areas. Constant currency – A significant amount of the company’s revenue is derived from international operations. As a result, the company’s revenue ha s b een and will continue to be affected by changes in the U.S. dollar against major international currencies. The company refers to revenue growth rates in con stant currency or on a constant currency basis so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate c omp arisons of the company’s business performance from one period to another. Constant currency is calculated by retranslating current and prior - period revenue at a consistent exchang e rate rather than the actual exchange rates in effect during the respective periods. Backlog – Represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or pe rformed. The company believes that actual revenue reflects the most relevant measure necessary to understand the company’s results of operations, but backlog ca n b e a useful metric and indicator of the company’s estimate of contracted revenue to be realized in the future, subject to certain inherent limitations. The timing of conversio n o f backlog to revenue may be impacted by, among other factors, the timing of execution, the extension, nullification or early termination of existing contracts with or without pen alt y, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. Investors are cautioned that backlog should n ot be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP. Total Contract Value (TCV) – Represents the initial estimated revenue related to contracts signed in the period without regard for early termination or re ven ue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represent s T CV attributable to expansion and new scope for existing clients and new logo contracts. L&S TCV is driven by software license renewals, and as such, changes in timing or te rms of renewals can lead to fluctuations from period to period. The company believes that actual revenue reflects the most relevant measure necessary to understand the company’s res ult s of operations, but TCV can be a useful leading indicator of the company’s ability to generate future revenue over time, subject to certain inherent limitations. Measuring T CV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solution s s old, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of contract signing, and contract mod ifi cations, including, without limitation, contract nullification and termination, over the lifetime of a contract. Investors are cautioned that TCV should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP. Book - to - bill – Represents total contract value booked divided by revenue in a given period. New Business – Represents expansion and new scope for existing clients and new logo contracts.