Investor Relations

Investor Relations Snapshot

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FY & 4Q 2017

Business Highlights

Full Year 2017

Exceeded or achieved full-year guidance on all guidance metrics
Services backlog up 10.3% year over year to $4.3 billion, the highest level since YE 2015
Total ACV up 22% year over year; Total TCV up 8% year over year
Pension deficit declined $390 million to end 2017 at $1.78 billion

4Q 2017

Total revenue of $747 million, representing growth of 3.5% year over year
Operating cash flow of $203 million, up $88 million relative to $115 million in prior-year quarter
Adjusted free cash flow of $204 million, up $89 million relative to $115 million in prior-year quarter

* For complete results, disclosures and definitions, see the 4Q17 Earnings Release and Slides.

Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended
December 31

Year Ended
December 31

2017

2016

% Change

2017

2016

% Change

Revenue

744.8

721.7

3.2%

2,741.8

2,820.7

(2.8%)

Cost of revenue

575.3

561.5

2.5%

2,263.5

2,262.1

0.1%

Selling, general and administrative

100.9

109.8

(8.1%)

426.5

455.6

(6.4%)

Research and development

9.5

14.9

(36.2%)

47.2

55.4

(14.8%)

Operating profit (loss)

59.1

35.5

66.5%

4.6

47.6

(90.3%)

Interest expense

16.4

7.5

118.7%

52.8

27.4

92.7%

Other income (expense), net

(15.3)

(3.4)

350.0%

(23.8)

0.3

Income (loss) before income taxes

27.4

24.6

11.4%

(72.1)

20.5

Provision for (benefit of) income taxes

(27.1)

23.0

(5.5)

57.2

Consolidated net income (loss)

54.5

1.6

(66.6)

(36.7)

79.6%

Net income attributable to non-controlling interests

4.0

2.8

42.9%

(1.3)

11.0

Net income (loss) attributable to Unisys Corporation

50.5

(1.2)

(65.3)

(47.7)

36.9%

Earnings (loss) per common share (Diluted)

$0.76

$(0.02)

($1.30)

($0.95)

36.8%

Diluted shares for per share computation (thousands)

72,596

50,085

44.9%

50,409

50,060

0.7%

Condensed Consolidated Balance Sheets (Unaudited)

December 31

% Change

2017

2016⁽¹⁾

Cash and cash equivalents

733.9

370.6

98.0%

Accounts receivable, net

503.3

505.8

(0.5%)

Inventories

26.1

29.0

(10.0%)

Prepaid expense and other current assets

126.2

121.9

3.5%

Total current assets

1,389.5

1,027.3

35.3%

Properties, net

142.5

145.3

(1.9)%

Outsourcing assets, net

202.3

172.5

17.3%

Marketable software, net

138.3

137.0

0.9%

Prepaid postretirement assets

148.3

33.3

345.3%

Deferred income taxes

119.9

146.1

(17.9%)

Goodwill

180.8

178.6

1.2%

Restricted cash

30.2

30.5

(1.0%)

Other long-term assets

190.6

151.0

26.2%

Total non-current assets

1,152.9

994.3

16.0%

Total assets

2,542.4

2,021.6

25.8%

Current maturities of long-term debt

10.8

106.0

(89.8%)

Accounts payable

241.8

189.0

27.9%

Deferred revenue

327.5

337.4

(2.9%)

Other accrued liabilities

391.5

349.2

12.1%

Total current liabilities

971.6

981.6

(1.0%)

Long-term debt

633.9

194.0

226.8%

Long-term postretirement liabilities

2,004.4

2,292.6

(12.6)%

Long-term deferred revenue

159.0

117.6

35.2%

Other long-term liabilities

100.0

83.2

20.2%

Total non-current liabilities

2,897.3

2,687.4

7.8%

Total deficit

(1,326.5)

(1,647.4)

(19.5%)

Total liabilities and equity

2,542.4

2,021.6

25.8%

Condensed Consolidated Statements of Cash Flows (Unaudited)

Year Ended December 31

2017

2016⁽¹⁾

Net cash provided by (used for) operating activities

166.4

218.2

Proceeds from/purchases of investments, net

24.8

(34.1)

Investment in marketable software

(64.4)

(63.3)

Capital additions of properties

(25.8)

(32.5)

Capital additions of outsourcing assets

(86.3)

(51.3)

Other

(0.8)

(0.9)

Net cash used for investing activities

(152.5)

(182.1)

Proceeds from issuance of long-term debt

452.9

213.5

Payments of capped call transaction

0.0

(27.3)

Issuance costs relating to long-term debt

(12.1)

(7.3)

Payments of long-term debt

(107.5)

(129.8)

Net proceeds from short-term borrowing & financing fees

(1.1)

(65.8)

Other

(2.3)

(0.4)

Net cash provided by (used for) financing activities

329.9

(17.1)

Effect of exchange rate changes on cash, cash equivalents & restricted cash

19.2

(14.7)

Increase in cash, cash equivalents & restricted cash

363.0

4.3

Cash, cash equivalents & restricted cash, beginning of period

401.1

396.8

Cash, cash equivalents & restricted cash, end of period

764.1

401.1

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

4Q17 Revenue Profile ($M)

2Q16 Profile

Segment

4Q17

4Q16

Change

In Constant Currency

Services

$592.6

$596.5

($3.9)

(0.7%)

(2.8%)

Technology

$152.2

$125.2

$27.0

21.6%

16.2%

Total

$744.8

$721.7

$23.1

3.2%

0.5%

Segment Detail

4Q17

4Q16

Change

In Constant Currency

Cloud & Infrastructure Services

$333.6

$335.1

($1.5)

(0.4%)

(2.3%)

Application Services

$204.0

$217.6

($13.6)

(6.3%)

(8.3%)

BPO Services

$55.0

$43.8

$11.2

25.6%

20.9%

Technology

$152.2

$125.2

$27.0

21.6%

16.2%

Total

$744.8

$721.7

$23.1

3.2%

0.5%

Geography

4Q17

4Q16

Change

In Constant Currency

U.S.& Canada

$309.1

$311.4

($2.3)

(0.7%)

(0.8%)

International

$435.6

$410.3

$25.3

6.2%

1.5%

Total

$744.8

$721.7

$23.1

3.2%

0.5%

Regional Detail

4Q17

4Q16

Change

In Constant Currency

U.S. & Canada

$309.1

$311.4

($2.3)

(0.7%)

(0.8%)

EMEA

$259.5

$204.8

$54.7

26.7%

18.6%

Asia Pacific

$107.4

$127.1

($19.7)

(15.5%)

(16.2%)

Latin America

$68.7

$78.4

($9.7)

(12.4%)

(13.5%)

Total

$744.8

$721.7

$23.1

3.2%

0.5%

Sector

4Q17

4Q16

Change

In Constant Currency

Enterprise Solutions

$599.8

$587.1

$12.7

2.2%

(1.1%)

U.S. Federal

$145.0

$134.6

$10.4

7.7%

Total

$744.8

$721.7

$23.1

3.2%

0.5%

Sector Detail

4Q17

4Q16

Change

In Constant Currency

U.S. Federal

$145.0

$134.6

$10.4

7.7%

Public

$166.9

$152.4

$14.5

9.5%

7.4%

Commercial

$223.7

$250.7

($27.0)

(10.8%)

(13.1%)

Financial

$209.2

$184.0

$25.2

13.7%

9.2%

Total

$744.8

$721.7

$23.1

3.2%

0.5%

Revenue Type

4Q17

4Q16

Change

Recurring Services

$460.1

$453.8

$6.3

1.4%

Non-Recurring Services

$132.5

$142.7

($10.2)

(7.1%)

Technology

$152.2

$125.2

$27.0

21.6%

Total

$744.8

$721.7

$23.1

3.2%

FY17 Revenue Profile ($M)

2Q16 Profile

Segment

FY17

FY16

Change

In Constant Currency

Services

$2,328.2

$2,406.3

($78.1)

(3.2%)

(3.7%)

Technology

$413.6

$414.4

$0.8

(0.2%)

(1.3%)

Total

$2,741.8

$2,820.7

($78.9)

(2.8%)

(3.4%)

Segment Detail

FY17

FY16

Change

In Constant Currency

Cloud & Infrastructure Services

$1,317.0

$1,352.9

($35.9)

(2.7%)

(3.5%)

Application Services

$808.3

$859.0

($50.7)

(5.9%)

(6.7%)

BPO Services

$202.9

$194.4

$8.5

4.4%

8.4%

Technology

$413.6

$414.4

$0.8

(0.2%)

(1.3%)

Total

$2,741.8

$2,820.7

($78.9)

(2.8%)

(3.4%)

Geography

FY17

FY16

Change

In Constant Currency

U.S.& Canada

$1,287.2

$1,363.3

($76.1)

(5.6%)

International

$1,454.6

$1,457.4

($2.8)

(0.2%)

(1.3%)

Total

$2,741.8

$2,820.7

($78.9)

(2.8%)

(3.4%)

Regional Detail

FY17

FY16

Change

In Constant Currency

U.S. & Canada

$1,287.2

$1,363.3

($76.1)

(5.6%)

EMEA

$810.0

$804.2

$5.8

0.7%

1.6%

Asia Pacific

$360.6

$388.7

($28.1)

(7.2%)

(8.4%)

Latin America

$284.0

$264.5

$19.5

7.4%

1.1%

Total

$2,741.8

$2,820.7

($78.9)

(2.8%)

(3.4%)

Sector

FY17

FY16

Change

In Constant Currency

Enterprise Solutions

$2,170.9

$2,256.6

($85.7)

(3.8%)

(4.5%)

U.S. Federal

$570.9

$564.1

$6.8

1.2%

Total

$2,741.8

$2,820.7

($78.9)

(2.8%)

(3.4%)

Sector Detail

FY17

FY16

Change

In Constant Currency

U.S. Federal

$570.9

$564.1

$6.8

1.2%

Public

$655.5

$678.7

($23.2)

(3.4%)

(4.1%)

Commercial

$837.9

$880.8

($42.9)

(4.9%)

(6.0%)

Financial

$677.5

$697.1

($19.6)

(2.8%)

Total

$2,741.8

$2,820.7

($78.9)

(2.8%)

(3.4%)

Revenue Type

FY17

FY16

Change

Recurring Services

$1,829.9

$1,873.7

($43.8)

(2.3%)

Non-Recurring Services

$498.3

$532.6

($34.3)

(6.4%)

Technology

$413.6

$414.4

$0.8

(0.2%)

)Total

$2,741.8

$2,820.7

($78.9)

(2.8%)

Selected Grantor Information