Investor Relations

Investor Relations Snapshot

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Second Quarter 2017

Business Highlights*

First Half 2017

Services gross margin up 70 basis points year over year; Services operating profit margin up 20 basis points year over year
Services segment revenue decline of 4 percent year over year, an improvement of 300 basis points versus rate in prior-year period (3 percent year-over-year decline in constant currency)
New business TCV up 65 percent year over year

2Q17

New business TCV up 74 percent year over year
Services backlog relatively flat sequentially at $3.7 billion
Successfully closed $440 million Senior Secured Notes offering

* For complete results, disclosures and definitions, see the 2Q17 Earnings Release and Slides.

Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended
June 30

Six Months Ended
June 30

2017

2016

% Change

2017

2016

% Change

Revenue

666.2

748.9

(11.0%)

1,330.7

1,415.7

(6.0%)

Cost of revenue

563.7

570.6

(1.2%)

1,108.0

1,138.9

(2.7%)

Selling, general and administrative

114.2

115.7

(1.3%)

223.3

225.8

(1.1%)

Research and development

13.1

(0.0%)

26.9

29.1

(7.6%)

Operating profit (loss)

(24.8)

49.5

(27.5)

21.9

Interest expense

14.3

7.8

83.3%

20.0

12.2

63.9%

Other income (expense), net

(3.2)

2.6

(11.6)

1.4

Income (loss) before income taxes

(42.3)

44.3

(59.1)

11.1

Provision for (benefit of) income taxes

(3.8)

18.8

9.1

24.3

(62.6%)

Consolidated net income (loss)

(38.5)

25.5

(68.2)

(13.2)

Net income attributable to non-controlling interests

3.5

3.9

(10.3%)

6.5

5.1

27.5%

Net income (loss) attributable to Unisys Corporation

(42.0)

21.6

(74.7)

(18.3)

Earnings (loss) per common share (Diluted)

($0.83)

$0.36

(1.48)

(0.37)

Diluted shares for per share computation (thousands)

50,437

71,786

(29.7%)

50,346

50,036

0.6%

Condensed Consolidated Balance Sheets (Unaudited)

June 30

% Change

2017

2016⁽¹⁾

Cash and cash equivalents

571.1

463.6

23.2%

Accounts and notes receivable, net

573.9

561.1

2.3%

Inventories

32.4

39.1

(17.2%)

Prepaid expense and other current assets

135.1

130.4

3.7%

Total current assets

1,312.5

1,194.2

9.9%

Properties, net

151.4

145.4

4.1%

Outsourcing assets, net

178.1

185.4

(4.0%)

Marketable software, net

134.0

136.3

(1.7%)

Prepaid postretirement assets

42.6

68.4

(37.8%)

Deferred income taxes

149.9

130.5

14.8%

Goodwill

180.0

179.7

0.2%

Restricted cash

19.1

30.2

(36.8%)

Other long-term assets

151.3

171.5

(11.7%)

Total non-current assets

1,006.4

1,047.4

(3.9%)

Total assets

2,318.9

2,241.6

3.4%

Current maturities of long-term debt

11.3

11.1

1.1%

Accounts payable

199.0

187.2

6.3%

Deferred revenue

346.6

333.2

4.0%

Other accrued liabilities

329.1

352.4

(6.5%)

Total current liabilities

886.0

883.9

0.2%

Long-term debt

629.8

408.8

54.1%

Long-term postretirement liabilities

2,230.3

1,999.3

11.6%

Long-term deferred revenue

116.3

139.8

(16.8%)

Other long-term liabilities

86.6

83.4

3.8%

Total non-current liabilities

3,063.0

2,631.3

16.4%

Total deficit

(1,630.1)

(1,273.6)

28.0%

Total liabilities and equity

2,318.9

2,241.6

3.4%

Condensed Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended June 30

2017

2016⁽¹⁾

Net cash provided by operating activities

(90.2)

56.9

Proceeds from/purchases of investments, net

14.9

(1.2)

Investment in marketable software

(28.8)

(30.2)

Capital additions of properties

(15.9)

(11.0)

Capital additions of outsourcing assets

(36.9)

(28.8)

Other

(0.3)

(0.2)

Net cash used for investing activities

(67.0)

(71.4)

Proceeds from issuance of long-term debt

445.0

213.5

Payments of capped call transaction

0.0

(27.3)

Issuance costs relating to long-term debt

(11.7)

(7.3)

Payments of long-term debt

(97.7)

(1.3)

Net payments of short-term borrowing

0.0

65.8

Other

(2.1)

(0.4)

Net cash provided by (used for) financing activities

333.5

111.4

Effect of exchange rate changes on cash and cash equivalents

12.8

0.1

Increase (decrease) in cash, cash equivalents & restricted cash

189.1

97.0

Cash, cash equivalents & restricted cash, beginning of period

401.1

396.8

Cash, cash equivalents & restricted cash, end of period

590.2

493.8

⁽¹⁾Certain amounts have been reclassified to conform with the 2017 presentation

2Q17 Revenue Profile ($M)

2Q17 Profile

Segment

2Q17

2Q16

Change

In Constant Currency

Services

$574.8

$613.8

($39.0)

(6.4%)

(5.2%)

Technology

$91.4

$135.1

($43.7)

(32.3%)

(30.0%)

Total

$666.2

$748.9

($82.7)

(11.1%)

(9.6%)

Segment Detail

2Q17

2Q16

Change

In Constant Currency

Cloud & Infrastructure Services

$326.9

$340.0

($13.1)

(3.9%)

(3.5%)

Application Services

$196.4

$220.4

($24.0)

(10.9%)

(10.3%)

BPO Services

$51.5

$53.4

($1.9)

(3.6%)

5.7%

Technology

$91.4

$135.1

($43.7)

(32.3%)

(30.0%)

Total

$666.2

$748.9

($82.7)

(11.1%)

(9.6%)

Geography

2Q17

2Q16

Change

In Constant Currency

U.S.& Canada

$315.6

$355.8

($40.2)

(11.3%)

(11.2%)

International

$350.6

$393.1

($42.5)

(10.8%)

(8.1%)

Total

$666.2

$748.9

($82.7)

(11.1%)

(9.6%)

Regional Detail

2Q17

2Q16

Change

In Constant Currency

U.S. & Canada

$315.6

$355.8

($40.2)

(11.3%)

(11.2%)

EMEA

$199.6

$227.9

($28.3)

(12.4%)

(5.7%)

Asia Pacific

$85.6

$97.9

($12.3)

(12.6%)

(12.7%)

Latin America

$65.4

$67.3

($1.9)

(2.9%)

((8.8%)

Total

$666.2

$748.9

($82.7)

(11.1%)

(9.6%)

Sector

2Q17

2Q16

Change

In Constant Currency

Enterprise Solutions

$529.2

$597.4

($68.2)

(11.4%)

(9.6%)

U.S. Federal

$137.0

$151.5

($14.5)

(9.5%)

Total

$666.2

$748.9

($82.7)

(11.1%)

(9.6%)

Sector Detail

2Q17

2Q16

Change

In Constant Currency

U.S. Federal

$137.0

$151.5

($14.5)

(9.5%)

Public

$162.5

$159.8

$2.7

1.7%

3.1%

Commercial

$200.0

$207.6

($7.6)

(3.7%)

(3.2%)

Financial

$166.7

$230.0

($63.3)

(27.5%)

(24.8%)

Total

$666.2

$748.9

($82.7)

(11.1%)

(9.6%)

Revenue Type

2Q17

2Q16

Change

Recurring Services

$452.3

$483.7

($31.4)

(6.5%)

Non-Recurring Services

$122.5

$130.1

($7.6)

(5.8%)

Technology

$91.4

$135.1

($43.7)

(32.3%)

Total

$666.2

$748.9

($82.7)

(11.1%)

1H17 Revenue Profile ($M)

2Q17 Profile

Segment

1H17

1H16

Change

In Constant Currency

Services

$1,160.1

$1,208.9

($48.8)

(4.0%)

(3.4%)

Technology

$170.6

$206.8

($36.2)

(17.5%)

(16.6%)

Total

$1,330.7

$1,415.7

($85.0)

(6.0%)

(5.3%)

Segment Detail

1H17

1H16

Change

In Constant Currency

Cloud & Infrastructure Services

$662.2

$675.9

($13.7)

(2.0%)

(2.1%)

Application Services

$397.9

$431.0

($33.1)

(7.7%)

BPO Services

$100.0

$102.0

($2.0)

(2.0%)

7.0%

Technology

$170.6

$206.8

($36.2)

(17.5%)

(16.6%)

Total

$1,330.7

$1,415.7

($85.0)

(6.0%)

(5.3%)

Geography

1H17

1H16

Change

In Constant Currency

U.S.& Canada

$657.6

$694.5

($36.9)

(5.3%)

International

$673.1

$721.2

($48.1)

(6.7%)

(5.3%)

Total

$1,330.7

$1,415.7

($85.0)

(6.0%)

(5.3%)

Regional Detail

1H17

1H16

Change

In Constant Currency

U.S. & Canada

$657.6

$694.5

($36.9)

(5.3%)

EMEA

$378.4

$416.3

($37.9)

(9.1%)

(2.8%)

Asia Pacific

$166.9

$181.4

($14.5)

(8.0%)

(9.1%)

Latin America

$127.8

$123.5

$4.3

3.5%

(7.3%)

Total

$1,330.7

$1,415.7

($85.0)

(6.0%)

(5.3%)

Sector

1H17

1H16

Change

In Constant Currency

Enterprise Solutions

$1,045.9

$1,125.5

($79.6)

(7.1%)

(6.2%)

U.S. Federal

$284.8

$290.2

($5.4)

(1.9%)

Total

$1,330.7

$1,415.7

($85.0)

(6.0%)

(5.3%)

Sector Detail

1H17

1H16

Change

In Constant Currency

U.S. Federal

$284.8

$290.2

($5.4)

(1.9%)

Public Sector

$324.5

$338.4

($13.9)

(4.1%)

(3.8%)

Commercial

$400.1

$416.2

($16.1)

(3.9%)

(3.8%)

Financial

$321.3

$370.9

($49.6)

(13.4%)

(11.2%)

Total

$1,330.7

$1,415.7

($85.0)

(6.0%)

(5.3%)

Revenue Type

1H17

1H16

Change

Recurring Services

$913.5

$952.0

($38.5)

(4.0%)

Non-Recurring Services

$246.6

$256.9

($10.3)

(4.0%)

Technology

$170.6

$206.8

($36.2)

(17.5%)

Total

$1,330.7

$1,415.7

($85.0)

(6.0%)

Selected Grantor Information

​​​​Investor Relations Snapshot

Second Quarter 2017

Investor Relations Snapshot