Unisys Corporation (UIS) Earnings Call Transcript & Summary

Hello, everyone. This is Courtney Holben, Vice President, Investor Relations. Thank you for taking the time to listen to the Introduction to Unisys Investor Module that we prepared. While we had initially planned to host a more in-depth Investor Day, due to the current circumstances, we've decided to postpone that until we are able to host an in-person event. In the meantime, to help address many of the questions we have been getting from investors who are new to the story or who have not looked at the company in several years, we have put together this online webcast, designed to provide an overview of the business. Hopefully, this also provides some fresh perspectives, even for those of you who have followed the story closely. The discussion will include comments from Peter Altabef, our Chairman and CEO; Eric Hutto, President and COO; Vishal Gupta, SVP, Products and Platforms and Chief Technology Officer; and Ann Ruckstuhl, SVP and Chief Marketing Officer; with concluding remarks from Mike Thomson, SVP and CFO. I would like to thank all of these senior leaders for their participation in this discussion. We hope you all find it valuable, and we look forward to building upon this with a more in-depth review of strategy and financial expectations at an Investor Day we are able to host in the future. In the meantime, we hope everyone is safe, healthy and doing well in this unprecedented time. I will now hand the discussion over to Peter.

Thank you, Courtney, and I'd like to add my welcome to Courtney's. We are aware that we have many new investors and prospective investors since we recapitalized the company effectively in March with the sale of the U.S. Federal business. And we are really excited to take this opportunity to spend a little time with you and really provide a baseline for what Unisys looks like today and what we expect it to look like in the future. With that, we will spend the next hour, and you'll spend it with 5 of us: Myself; Eric Hutto, who is our President and Chief Operating Officer and who'll really focus on the business drivers that are most relevant to the business today; Vishal Gupta, who leads our Products and Platforms and then our Chief Technology Officer, will go into more detail in some of the solutions that Eric will discuss; and then Ann Ruckstuhl, who is our Chief Marketing Officer, will talk not only about our vision and mission and our brand, but how we're interacting with various media, with our clients, with our prospects and ultimately with each of you since we know that you spend a fair amount of time looking at our information on our website. We will cap off the discussion today with Mike Thomson, our Chief Financial Officer, and Mike will give you a little bit of a pointer toward our upcoming earnings call. So with that, I'd like to turn to Slide 4, which discusses our diversified recurring revenue base. Diversification, we believe, is important. It's been a very conscious part of Unisys' strategy. And we think, especially in times like these where you really have varied time frames where people will be coming out of COVID-19 in terms of different countries, different regions, different markets, having a diversified base, we believe, is very important. It also reflects our client base. As I'll discuss in a minute, we have clients in various industries, but many of those clients are international. And so having the ability to serve those clients as we do in about 100 countries around the world is one of our competitive assets. When we look at this slide, you can see the green column talks about our revenue from the perspective of what we provide at the highest level. We talk about cloud and infrastructure services. Eric will discuss that a little later. And the 2 biggest pieces of those are actually what most people refer to as cloud and infrastructure and then another piece of cloud and infrastructure not everybody has, which is what we call our global workspace business. It's important to us. Of the 58 percentage points of revenue in our overall CIS, global workspace represents about 33 percentage points of those 58, so actually, a majority of that revenue. That has been very important to us, particularly around COVID-19 as we have helped clients really establish work from home capability or expand the capability that they already have because it's something we know well. Application services, about 17%; BPO at 10%; and technology is listed as 15% of our revenue. For us, technology is largely our proprietary software, and that is sold either through a traditional licensing or a SaaS basis. From a regional perspective, you can see that the U.S. and Canada is the largest region, but represents about 39% of our revenue. So fully, 61% comes from the rest of the world. Again, we think this is an advantage as different regions are poised to come out of COVID-19 at different times. And then from a sector detail, you can see the public sector represents about 30% of our revenue. Public sector making up U.S. state and local, governments around the world. And even though we sold our U.S. Federal business in March, we still have U.S. federal revenue, which comes through largely licensing and some services revenue that we are getting in providing services to SAIC, which provides them to the federal government. Financial services represents 30% of our business and our commercial business, which is everything other than financial services and public, actually is the largest single sector at 40%. The red column represents the way we contract for our revenue. And here, we're a little different than many of our competitors. Our technology revenue, again, is mostly proprietary software and through either SaaS or license sales, but really through very long relationships most often. So we actually characterize that as more long-term revenue because of the relationships. And so when you add the 15% and the 66%, which are long-term contracts, about 81% of our revenue is what we would call long term in nature. Only 19%, what we have here as nonrecurring or what people would refer to as project revenue. Again, we think that's an advantage in a time where discretionary projects and project revenue might not be the first things that our clients are looking to engage in. If we turn now to the next slide, which is Slide 5. I'd like to cover 3 time frames: where we were as a company going into the COVID-19 situation since that points to how healthy we were going in; what positive activity we expect to accomplish during COVID-19; and then what we expect to look like coming out of it. First, on the first column, we had plenty of business momentum going into COVID-19. In the 5 years that Eric Hutto and I have been at the company, we have been consistently strengthening our balance sheet. Our mix of assets and liabilities is very important as we prepare for rainy days, and arguably, we're certainly in one now, and as it helps us become more competitive when we contract for new business. I don't have the right words to categorize our customer loyalty. Our top 50 customers have been with us for an average of 18 years each. So as we think about that, we have plenty of new large customers. So when you average 18 years, what we are pointing to is that we have many customers that go back with us more than 40 years. We have increased profits every year for the last 4 years, a mark to be proud of and one of the reasons we have been able to invest in the new solutions you will hear about from both Eric and Vishal. And finally, we have signed billions of dollars of new logo and new scope work over the last several years. We are winning against our competitors, not every time, but more than our fair share. The second column speaks to what we need to accomplish as a company during the COVID-19 period. We are not standing still waiting for this to end. We're using this time to get better and stronger. We're accelerating our efforts to re-skill and provide new training for our associates. We always do this because one of the things we do as a company is equip our people for the next client assignment using the next 2 -- new technology. But we're even more focused in this COVID-19 period, particularly as we see more opportunities in the security field. I mentioned our investment in solutions and in new technologies. That is not stopping. We believe in our future and we're investing today to maximize our value for our clients tomorrow. And then similar to a shoemaker who has old worn-out shoes, our internal processes and tools are not necessarily new and they make it harder to serve our clients and to serve ourselves to help serve our clients. So we are continuing our retooling efforts during the COVID-19 process. We have been putting in a new ERP system. We're installing a new workforce management capability and putting in a new digital marketing backbone, all happening during COVID-19. The third column speaks to what we have to do as we exit COVID-19. Eric will also cover this in more detail, but the short of it is we will be positioned for more revenue; increased profits, which will help drive investments; better cash flow; an engaged, re-skilled workforce; and higher client satisfaction than even our industry-leading Net Promoter Score of 52. We need to be positioned for all of these things, and we will have the team to achieve them. I have great confidence in our associates. With that, Eric will get into more detail on our approach. Eric?

Thank you, Peter, and welcome, everybody. Over the last few years, we've really progressed our company. We've narrowed our focus and we've leveraged our strength. Unisys is well known for strong engineering, scalable and dependable products like ClearPath Forward and has long been a leader in user services. And while all are still relevant, they've evolved to operate as platforms in the cloud in a very secure way and providing our clients with a path of digital operating models and rapid expansion to new sources of revenue. As a company of over 100 years old, we have long-standing relationships, and that brings with us a challenge of changing what we are known for to what we are capable of in the future. So you have to change how you sell from what you do to what clients can do by selecting you over a competitor. You must deliver outcomes, not products or services. And ultimately, we have to serve traditional procurement methods as we prepare for the digital economy. We are already in development of a digital sales platform that will support self-service pricing and integrate with existing and emerging online marketplaces such as Amazon. To achieve this efficiently and effectively, we go to market by verticals to have deeper knowledge of our clients' business models and objectives. We have narrowed our IP assets for 118 individual products of 4 core platforms, which I'll touch on later in this presentation, and a few industry applications. And we have focused our selling SG&A spend from over 40 countries to less than 20 key markets. All of these shifts have allowed us to maximize our talent in the right place, improve our innovation speed to market and improve profitability. As we move to Slide 7, our opportunity is significant. With every company focused on outcomes, which is how we have evolved our model and our thinking, you can look across various subject matters and topics from cybersecurity to digital transformations that are, by the way, 66% to 70% fail, but whatever study you read, it's still a high number, to cloud and adoption of AI and automation. The recent COVID-19 crisis drove the world to go remote in weeks. There's skills gaps, technical debt with legacy systems, lack of quality data and the ever-increasing compliance and regulatory requirements that continue to be put upon businesses around the globe. Digital is an experience race and there are more options everyday to obtain that experience. That is an outcome all companies have -- not only have to figure out, but have to sustain. Most companies have embarked on some form of a digital transformation many have failed mainly because they weren't clear on what they were looking to achieve. If you think about digital, it's more about creation of revenue streams and new sources of revenue, not just optimizing the existing operating model and cost structure. And that's where most people focus and that's why most of them fail to meet the objectives from either a Board or a CEO's perspective. And business outcomes are our focus. So as we look to provide our clients an environment of ever-increasing, as I said, compliance, regulatory and cyber attacks that are getting more sophisticated and more frequent every single minute and throw into that the pandemic we've just gone through that's thrown the world into a radically different operating model and changed policies, not just with governments and businesses, but also how we socially interact, you get a pretty challenging environment to operate in. It also, though, provides opportunities for companies like Unisys to demonstrate its value and create a superior experience. We must remain relevant in our ideas, pragmatic in our answers and aligned to our clients' outcomes. We often tell new prospects what they can expect if they choose Unisys. We are accountable and lean into our issues. We bring constructive attention to every engagement. The value of a company like Unisys is we bring all the global thinking. We have experiences around the world and with that comes a lot of challenging when clients look to operate within their own business structure. And that's one of the greatest feedbacks we get from our Net Promoter Score, our client surveys, is that we have moved from being an SLA contract-oriented company to provocative. We think we bring unsolicited ideas everyday to our client base and that has helped us not just expand wallet share with our existing clients, but given us the references we need to attract new ones as well. We also tell them what we're not. We will not be the lowest price. And I think that is also beginning to set our reputation apart from just pursuing business and orders to establishing ourselves as a value-creating organization. If we move to the next slide and look at how we stand out, one of the things that I'm adamant about in the culture is we don't sell. We solve. And you heard me already talk about outcomes. That really aligns all the way through the go-to-market organization. And client satisfaction is measured by Net Promoter Score. It's an industry standard. You'll hear me refer to it as NPS. Our compensation plans are tied to achieving our NPS goals each year all the way through the organization up to and including myself. This drives the behavior by our account teams that service our clients so they are listening, actively solving to outcomes and not just selling stock. While we can generate some revenue, it will be lower and less. Over time, we don't create the true business value by delivering to those outcomes. Speed of delivery is always important, and we have worked to reconstruct processes and policies to improve our ability to meet the expectations of our clients and deliver on their stated business objectives. Not everything is planned though, as COVID-19 has shown us, and clients need a responsive partner, one that can be nimble and flex to the need in an accelerated time line due to heightened need and do so without compromising either party in a secure way. And underscoring all of our design thinking and solutions is our mindset around a secure world. It is not just our Zero Trust approach, but about keeping our clients' business always on, knowing that bad actors will get in, but with Unisys, they don't get out, and that it's confidence that all executives are looking forward [ to say they wake out ]. And this slide just depicts some of our clients' commentary around each one of those areas. Again, we're driven to listen. We're driven to solve. And over the last few years, that has shown up in our wins; it has shown up in our renewal rates, which exceed 95% consistently; and it has done a lot of that on the back of just tremendously talented people that we have not only had in this company, but also acquired over the years. Moving to Slide 9, our scale and reach. We're small enough to be nimble, but big enough to be credible. This slide just gives you a perspective of where we are around the world, what we're able to deliver around the world. And it doesn't matter what cloud we're using. It could be Google, IBM, Azure, AWS. We can deliver anywhere, anytime. We have 14 data centers, 6 that Unisys owns and 8 that we also work with co-locators on. We also have 80 data centers that we manage for our clients. They are actually on the client site. They are their data centers. We simply manage them for them. We have 4 security operation centers. We have over 15 years of delivering managed security services to our clients. We have 100-plus staff on hand in our security operating centers around the globe in addition to our localized service support. We have dedicated security consultants. And we are absolutely in compliance with all of the certifications and reviews that you go through annually. Six R&D centers. I'm going to let Vishal Gupta, our CTO and SVP of our Products and Platforms team, talk more about this, but we have not lost the engineering skills. We've actually added to it. We have some of the most talented people, I believe, around the world in this group. And we have 6 of those centers to continue our innovation and ensure that we stay up and ahead of a lot of the things that our clients will be needing from a technology perspective. And of course, we have our 16 service desks and 12 command centers. Our service desk predominantly service the calls in from our clients around things that their associates are having problems with. Our command centers really focus on delivering out a lot of the monitoring and evaluation and just ensuring that things are operating as they need to be. And then when things go wrong, this is the team that builds the bridge, gets online and really drives to make sure that we get fast resolutions to a major incident. And you can see in the top right-hand corner, we have 16,500 strong across all of these areas, the regions and our R&D team. We do utilize shoring. One of the things that separates Unisys apart in its people is we have 30 -- roughly 3,600 field engineers, which basically, if you were to compare us to a lot of Indian providers, would skew our shoring ratio, but they don't have that type of skill set. Those are actually great assets for us. One, they help solve the things in the field that our clients are struggling with and keep things running, but as we look to the future and we think about what we can become with those skill sets, IoT and sensors and a high connected world are going to need things to be replaced. And we're looking to move our command centers, our security desk -- or I'm sorry, service desk into more software remote capabilities, things that can be fixed not just through software, but also be able to go out in service. And that, I believe, gives us a great advantage, and it has today been an advantage that very few people have a strength of a field engineer team like that. In the next slide, this slide really was designed -- since we report out to you in services and technology, we wanted to make sure you had clarity of how the products and services flow into each segment. Note that our licensing revenue is reported under technology. Really, the major benefit of this view is to provide clarity on how we build revenue. It was shown by Peter on his opening slide. We have recurring and nonrecurring. Most of the capabilities here can be in either, but not all clients want all aspects of their environment under a managed services contract, the recurring revenue. But do you want help improving other areas of their business or environment? So many of these capabilities become projects that we sell in here and make up a nonrecurring portion of the revenue mix that Peter has shown earlier. By having these, we are able to expand our wallet share with existing clients. At times, these projects are where we enter into a relationship and it leads to a large managed services engagement. This was the case for the large insurance companies that needed a security compliance audit conducted and a remediation plan to meet new regulatory requirement. That engagement led to a managed services contract for cloud and infrastructure with a TCV of over $60 million. Our real strength is when we combine our technology with our services to differentiate in a competitive bid. Having Stealth embedded in our core platforms, that I'll touch on in a moment and Vishal will expand on further, gives us inherent value that most partners have to solve to. Here it is seamless across our platforms, not an afterthought or a bolt-on. While this may look like a lot of things we do, for the reach and scale and complexity of business today, it's a pretty focused set of capabilities and there is a minimum set of these capabilities you have to have to be credible. And we have organized and structured them in such a way that they support the 4 core platforms, which I'm going to move to next. As you can see here, again, designed to deliver outcomes, our clients are looking for cloud, security and digital workplace services, and our ClearPath Forward platform remains relevant. Let's start with the CloudForte. CloudForte is really about cloud being done right, being done securely and being done in a reliable manner. And that's what we have organized and put [ some of these ] those capabilities. We think of cloud as being not just infrastructure, but also applications. Those people don't actually talk about infrastructure anymore. They really focus on what they need to accomplish, what application or functionality do they need to get that done. And then inherently, somewhere along the line, there's an infrastructure design that's necessary underneath that. And that's how we look at our CloudForte offering. We work with all the providers, be it Azure, Microsoft. We work with Google. We can work with any cloud that's out there. We are agnostic in that way. We don't enter into any client conversation with a predetermined solution in the sense that we think they should be on this cloud after that one because we want to understand what they're trying to solve, too. Each one of those have their own strengths and capabilities and we want to make sure that we get the best outcomes to our client. InteliServe is our platform around our digital workplace services. A lot of work has been done by our technology team in the last few years on this. It really enables organizational digital transformation through a consultative approach. Years ago, Unisys really started down the path of personas that we are groups of people within organizations, and the engineer needs different types of desktop applications and capabilities versus someone who works in human resources. And through that persona-based thinking, we have really designed this platform to be that personal. It ensures that the user experience is matching to the business needs of that individual and what they do. It changes the way we work today through merged reality. This platform expands not just to the service desks, but also through our field services and engineering teams. And we have been able to reduce the number of engineers and use more centralized talent and skills. And with the use of augmented reality glasses, be able to guide people through solving things with less skilled associates on the ground, and we find that to be a highly productive, at the same time, highly skilled building approach to delivering those services in the future. We use AI and RPA and all the things behind it to drive our productivity to be more predictive, to be able to answer questions without people and the use of our bots. And then we have ClearPath Forward, which, again, has been long-standing, highly valued by a lot of clients. We still have many clients that run on it, but it's changed a lot. It's no longer a mainframe. It's no longer hardware-based and appliance-based. Vishal and his team have really elevated this thing into being really a software-oriented solution, and I'll let him talk more about that and how we've taken it to the cloud. But again, we still have many clients who are highly dependent on this. It's scalable. It's reliable. It handles large volumes of transactions and it's never been breached. And I think that's one of the great assets in the world today of cyber terrorism and attacks that you still have the thinking through and security approach to an operating system that allows you to run very critical applications around the world for governments and businesses. Underlying all of this in our core platforms is, as I said, security. It's in everything we do. It's how we approach any solution and any outcome that we're looking for with our clients. We may have the best cloud answer. We may have the best application answer, a workplace answer, but if it can't be secured and it can't keep our clients from being breached, then it's of no use. We have a Zero Trust mentality. Dynamic Isolation is really the approach and the way that we look at how we could answer a lot of our clients' questions around can you keep me from being in the news. And what we worked on is if you have a breach, you have minutes to isolate it, to understand it before it becomes a company-wide problem and you're in the news. And with our Dynamic Isolation under Stealth, we can identify a threat within seconds. We've tested it recently. Within 10 to 15 seconds, we can actually isolate that threat. But that's the technical side of it. The business value of it is your business is always on. You don't have to turn off your company. You don't have to turn off a branch, a manufacturing plant. Nothing gets turned off because we've isolated it so quickly, and you're not in the news. And that's the thing that, as I mentioned earlier, that most executives need to understand when they are listening to how they might solve to a security concern is we've got to keep the businesses running. We are in a digital economy, and we have to keep you out of the news and from paying those big [ fines ]. And so a lot of the legislation and regulatory changes around the world are bringing is the ownership to breaches, and that's where we have focused our security effort and mindset. Just want to spend a bit more on the broader security solutions as we move to the next slide. We're more than just Stealth. Stealth is absolutely a critical IP. It has a lot of intrinsic value. And it has also helped us separate ourselves in many deals that we have won over the past years. I'll talk about those in a minute, but we have more to it. We have managed security services. We have security consulting services. We've invested in TrustCheck, right, which is a cyber risk management tool that really helps companies understand and assess their vulnerabilities, and at the same time, prioritize what the cost of not addressing that is. So not everybody has unlimited, but our clients have to have the way to understand their risk, prioritize them and then align that budget to address the ones of the greatest risk to their company, and that's what TruckCheck has done. We bridge the gap between the CISO and the Board. We look at things with -- TrustCheck does that for us. It gives you a very dashboard, sensible way to have a business conversation about a very technical conversation. We obviously have partnerships. We are a big believer that we can't do everything ourselves. There are very talented and smart companies around the world and that if we aggregate them with us in a sequence, we have a superior experienced answer for most of our clients. It allows us to focus on what we do great, which is in -- which is what Stealth has done for us. We look at risk management, physical and logical, a full life cycle of security really. And again, Vishal will walk you through a bit more of his thinking and the road map of where we're taking not just our Stealth software, but also the rest of our offerings around security. Now we get to the part that I love because I'm one of the most competitive people out there. Love winning. I understand we will lose occasionally, but I don't like it, and we are winning. If you look at the companies that we compete against, and there are a few listed here, we actually look at 19 in our peer set as we track. It's pretty serious. Over the last 3 years, we have won significant amount of contracts. Now we look at total contract value in whole, and it really breaks down into, on average, about 22% of our contracts are in new logo. Another 22% are in new scope. So that's where we already have business with a client, say, cloud and infrastructure, and now they want us to do their digital workplace services. That's a whole new scope with a client. If you look at that, it would give us about 16% on average over the last few years from our expansion, that's that project work. So it's a very healthy blend of how we go and win in the marketplace. And it's the right balance, right? It gives us new clients to serve and also grow from. It also says that our offerings are relevant and they are something of value to the existing client base because they're beginning to buy more from us, and that is also something that we measure. If you look off to the right, we've won some really top-notch brands and very competitive bids. European Central Bank. Henkel is a renewal. It's been a client for a while. We won that in a re-compete and also expanded our scope. We have a very strong success in state and local governments in the U.S. You can see a few of them listed here. Those are not small contracts. Those are $100 million to $200 million contracts, and again, heavily contested. EBIS in Australia is around security, identity management, a very large contract there. And then Bancolombia is, again, a renewal with some expansion in it. So from our perspective, we punch above our weight. We're not fearful of the larger competitors. We obviously can win against them. And again, as I said earlier, we make sure that we're not going to be the lowest price, but we're going to be the highest value. And I'm really -- I've been pleased with our progress. We started off this year strong and I look forward to that continuing. All that said, really, the company is designed to deal with difficult times. COVID-19 has certainly stressed many companies. As I think back across the conversation we've just had, we have long-term contracts. That gives us a good base of revenue to depend on. Those long-term contracts are relationships. And those relationships stand by us in times like this, and they have. It's also proven out our design around business continuity so that we can move workloads around the world based on things that are happening, either politically, geographically. The pandemic, obviously, was challenging as governments moved into lockdown. But again, no service interruptions to our clients. So we have hardened business practices. I think our geographic diversification, our service capability and where we are around the globe, our scale and reach. And really, a lot of our solutions are really geared toward outcomes. Therefore, they are designed around helping clients reduce their cost, but at the same time, we have solutions that also allow them to spend and take advantages of opportunities as they present themselves. I think our strong government business is also something that is an attribute in times like this. Obviously, governments are stepping in to help businesses around the world with stimulus packages as well as bailouts. And again, those would be things that we are built around, we have great relationships with, and I think overall, has built this company to endure times like this. With that, I'll turn it over to Vishal Gupta, our CTO and Senior Vice President of Products and Platforms.

Thank you, Eric, for the introduction. My name is Vishal Gupta. I'm the CTO for Unisys, responsible for creating all our products and platforms. And I would love to take you through the journey over the next 15 minutes on why our strategic platforms are setting up Unisys for long-term success. For reference, we're on Slide 15. To drive the right strategic technology investments, Unisys looks regularly for what are large and growing markets getting created by technology disruption where we can establish long-term differentiation. Four such large and growing markets in 2020 and beyond are IoT, cloud computing, artificial intelligence and containers and Kubernetes. If you look at IoT on Slide 15, you can see it's really coming of age from this year onwards. So we have 21 billion devices and growing at a high CAGR of 30% going forward. Next, if you look at cloud computing and you look at all the data from IoT, it can now get to cloud. Cloud computing is expected to grow to $500 billion by 2023, again, on a large CAGR of 22.3%, which kind of creates it as a huge opportunity. But all this data and cloud needs to be analyzed. That's where you've got this market that's really developing nicely for artificial intelligence to interpret all of this massive data. And that market grows to almost $77 billion by 2022 at one of the highest CAGRs of 37.3%. And then if you round all of this up, it's not just about the infrastructure transformation. There's also a huge opportunity around developing applications in a new way with containers and Kubernetes. And almost 75% of the enterprises will be running applications, these -- the arena of microservices and containers and orchestrated by Kubernetes in 2022 and versus 30% today, and that, again, market is growing at a large CAGR of 40%. And underlying all of these 4 is cyber security, which is also having a large opportunity created from providing cyber security for IoT, cloud, AI or containers. And we all know we're in the middle of COVID-19. And so certainly, some of these markets can perhaps accelerate or perhaps maybe not grow as big in 2020, but the bottom line is each of these are large and high-growth market and present a massive opportunity for Unisys. So what have we been doing about it? In the last 18 months, Unisys has really been investing to take advantage of this technology disruption. And as you will see in future slides, our offerings are evolving to 4 differentiated platforms, which are CloudForte, InteliServe, Stealth and ClearPath Forward, and each of them is taking advantage of these disruptions. So let's go to the next slide, which is Slide 16. So here in the Slide 16, we talk about the first 3 important platforms that Unisys has invested in, and these are CloudForte for making hybrid cloud simple and delivering the outcomes; InteliServe for transforming all your workplace services, whether they be for call center, for managing these devices, or for your field engineering; and then Stealth for enabling this always-on security with always-on resilience. So let's talk about each of these platforms. If we think about cloud, the 2 big challenges in hybrid cloud are cost and complexity. With CloudForte, we're fundamentally reducing the infrastructure and operating cost with very innovative use of AIOps that you see on the slide. And also, we're taking the complexity away. And public clouds have a lot of complexity, hundreds of combinations possible among all these configurations, lots of new services. So we're taking all the complexity away by having what we call as digital guardrails that can assess each of these cloud workloads and policies against hundreds of these best practices and compliance standards to get the cloud right. And that's where you see the infrastructure and application assessment in the slide. In addition to these 2, our capabilities with secure Kubernetes and containers helps us accelerating the migration of these apps securely to this cloud and enabling both infrastructure and application transformation with CloudForte. So hopefully, that gives you some color. Now let's talk about digital workplace services. The 2 big challenges in the digital workplace services are really around how do you drive a great experience at the right cost for those end users in an enterprise who leverages workplace services and also how do you get this platform deployed in an agile manner. To address these challenges, Inteliserve has a lot of innovation being built in it. So this Inteliserve platform, we -- if you look at some of the components, we have an industrialized InteliApp. And we're infusing that with AI, with automation, and all of this is integrated to provide a great experience on any device that end users want. And also the platform is agile. It's easy to deploy. And it's hosted in Azure cloud with all the relevant integration, including ServiceNow, so that way, we can address both the 2 big challenges in the workplace services that we talked about. Now let's talk about security. In the world of security -- and we talk about Unisys securing your tomorrow. It's a big opportunity and focus for us. In the world of security, there are 3 big challenges that our Stealth platform is really marching towards. One, CISOs want the security to work across the entire digital landscape. And so they want a platform that's not just a point platform, but something that will work across everything part of the digital landscape. Number 2, they want to deliver true outcomes in a fast manner. And finally, they want a platform that can also support the evolving needs, like we see everybody now has a remote workforce, and how to address that. Stealth is truly unique where it can reduce the attack surface, unclog the asset, not just for data centers, not just for cloud, but also for things like IoT devices that you see on the slide and even containers and Kubernetes, and so truly for the entire digital landscape. Secondly, to deliver those fast outcomes that CISOs want, Stealth integrates seamlessly with other security platforms. In fact, we have over a dozen integrations today with platforms like ServiceNow. And it can dynamically isolate any device or a user in 15 seconds or less, making your enterprise truly resilient. There's nobody who can do it that fast and truly move at the speed of threat we can. And finally, if you think about the third challenge around agility, Stealth is very relevant in today's COVID-19 environment where the workforce is remote and the workforce needs to access all of these applications securely. And Stealth is faster, more secure and easier to deploy and scale to tens of thousands of users than VPN. We've recently announced it and we have seen a lot of interest in this. And due to all of these reasons, Stealth won the most innovative cyber security product of the year in February 2020 at RSA. So hopefully, you feel now good color onto all of these 3 platforms. Now let's go to Slide 17 next and talk about ClearPath Forward. For those of you who've been following us for a while, you know that ClearPath Forward is very significant for us, both in terms of -- it's a significant part of our technology revenue and it's also a leading platform in the industry for processing a large number of transactions in a secure manner. So let's talk about what are we doing to really set this one up for long-term success. So first, ClearPath really -- Forward continues to be a very significant platform of investment for us. And the investments that we're directing are to ensure that we can both retain the workloads that the customers are running today in ClearPath. And also, we're trying to make ClearPath attractive for the modern world so we can attract the workloads of tomorrow. To protect the existing investments of the customers, we're ensuring that ClearPath can not only provide the things that it is known for, which are security, given it's never -- no data has ever been taken out from it forcibly, high availability and high transaction throughput, we're also ensuring that it can support the customers' modernization plan. And that's where, as you can see on the chart, things like e-portal, which gives us the ability to leverage any type of modern front-end, any type of microservices; and things like data exchange, which enables us flexibility to leverage both ClearPath databases as well as other modern databases really coming to being. So that's a big part of our strategy to support that modernization. The second part of our strategy is we want to give people flexibility. We're giving the ability to run ClearPath anywhere they choose, whether it's the integrated system that you see on the left of the slide or whether it's a software series so that way they could choose any hardware they want. In fact, ClearPath is hardware-agnostic. And starting this year, we're also giving them the flexibility to run ClearPath Forward in cloud, starting with Azure first and eventually to AWS. And in that opportunity, also run it integrated with Stealth. So that creates actually not just flexibility, but also an additional opportunity for us for those customers. The third element of our strategy is to give our customers choice to expand ClearPath to new workloads of the future and adjacent applications like AI on the data that ClearPath has. And we're doing this by supporting new modern languages, things like Java or Python, in addition to our traditional languages that ClearPath has supported. And we're making sure that not only are we supporting these languages, we're trying to make sure that these languages can run securely. And that's where we're leveraging containers, and these containers will be secured by Stealth. But as you can see, we're giving our customers a lot of flexibility and choices and their ability to really take ClearPath more than modern architecture of the modern world. So to summarize, what you have seen so far from Slide 15, 16 and 17 is how Unisys is investing in creating differentiated platforms in hybrid cloud with CloudForte; in digital workplace services with Inteliserve; and in security with Stealth; and finally, in high-performance secure computing with ClearPath. And we're infusing these platforms with advanced technologies like AI, like microservices running in containers to really set ourselves up for long-term success. In that way, the technology disruptions that we discussed in the beginning are going to really reinforce both the value these platforms can bring and also the innovation in them. I would now like to turn it to our Chief Marketing Officer, Ann, to take you through our marketing strategy. Thank you.

Thank you, Vishal. Hello, everybody. By now, you would have gained a pretty good understanding of our strategy, state of the business, product and services as well as the enabling technology platforms. Now I'd like to spend 15 minutes to take you through our marketing strategy and how we use storytelling; awareness campaigns in our ecosystem, consisting of partners and industry analysts, to gain and accelerate mindshare and wallet share. So it all begins with our brand and the promise that we deliver. Simply put, what businesses and what business outcomes clients can expect from us. As what healthy brands do, we periodically revitalize our brand platform to reflect the strength of our path, the success of today and where we are going tomorrow. The Unisys brand carry substantial equity. The fact is Unisys is trusted by 21 of the top 25 airlines, 100 airports, more than 500 financial institutions and over 3,000 government agencies around the world to run their business and serve citizens every day. We are an essential enabler of the digital businesses today. So in early 2018, we surveyed the market, the squad analysis, and went about differentiating Unisys as a trusted brand to reflect our strength in security and IT services. And this is really the right move as 79% of companies surveyed at IDG say that they want to do business with a technology brand that they know and trust. And on the highest level, as you see in front of you on the slide, our vision is to enhance people's lives through a secure, reliable, advanced technology. And we do this by building high-performance, security-centric solution for the most demanding businesses and governments. And ultimately, we are all about better outcomes for our clients. And this is underpinned by our core beliefs that you see in front of you, which consists of curiosity, creativity, client-centricity, and most importantly, integrity. And I have to say, being in marketing where we -- we love to be storytellers. So we made this new brand platform easy and fun to use and we have completely transformed the Unisys brand internally and externally. So our messaging tagline created appear on our website; advertising; social channels; collateral events, large, small, physical or virtual; and as well as our office decors, posters, e-mail signature. We even have a brand mobile app. So we have, I hope, instill a sense of purpose, mission and swagger for our associates from Silicon Valley to Blue Bell, Pennsylvania; Augusta, Georgia; Sao Paulo; London; Budapest; India; Manila; China; all the way to Sydney. So if you can go to the next slide, let's talk about a bit our brand. What is different about the Unisys brand compared to all the technology and IT services companies out there? So if you look at it, we really rise above our competition in 3 key areas: security; innovation through IP-based, technology-driven solutions; and client success. And the marketing and communications team work in lockstep with Peter and Eric and Vishal's organization to inspire, educate and substantiate our unique offering so that we can gain both mindshare as well as wallet share. So let's look at security for a moment. We are absolutely leading in the security space. And we do this through a unique combination of thought leadership, Stealth and our security services. We are highly visible on the international stage through Peter's work with the White House National Security Telecommunications Advisory Committee, also known as NSTAC, and we're leading its Cybersecurity Moonshot project. And in addition, the core security leadership team here at Unisys, we are actively participating in Aspen Institute, EastWest Institute, Cybersecurity Tech Accord with many of our tech partners, and all of which really drive the next-generation security policies and technology needed for a safer and more resilient security infrastructure. In addition, on the thought leadership front, we have our signature research. Many of you may have heard about the Unisys Security Index. Now it's actually in its 14th year. And it measures year-over-year changes and consumer concerns related to national, personal, financial and Internet security. In 2019 alone, the Unisys Security Index garnered over 2,100 publication articles in less than 4 months. And by the way, over 1,400 of that is actually on television and radio segments. And these are things that we don't pay for. This is people covering the insight because they find that useful. The Stealth security software. It's one of the few software encryption and micro-segmentation solution out there actually endorsed by NSA, the National Security Agency. So the product and the capability are certified to protect sensitive system for over 20 governments worldwide. And our security offering consistently win, the hottest product at RSA, from CSO online, CSO magazine, CRN, just to name, over the past few years. And then lastly, when we say security is in everything we do, we really mean that. It is embedded. From provisioning endpoint security as part of our digital replay services; to securing workloads on the cloud, whether it's AWS, Azure or ServiceNow; or using Stealth and our infrastructure services to build security in through our DevSecOps and our application services, it really is in everything that we do. So this thought leadership on security, combined with all the great product marketing that we do in partnership with technology and services, we deliver campaigns. And I can tell you, it's showing even from a demand gen perspective, that last year, year-over-year, we're seeing a 64% increase in security leads alone. Now if you look at innovation, as I mentioned and also Vishal described this in more detail, our IP-based technology-driven solutions based on Stealth, InteliServe and CloudForte really is the best in breed. We're building AI, blockchain, IoT, 5G capability, and they continue to differentiate Unisys and what we do. Now the industry analysts have taken notice. Our digital workplace services is positioned as a Magic Quadrant leader by Gartner. And Stealth is positioned as a strong performer in the first issue of the Forrester Zero Trust Wave. Microsoft, for example, is paying advertising to promote CloudForte for Azure capability because they recognize that we are a leader in the migration and managed services in migrating clients to the cloud. And so last year, we have launched easily over 10 major innovation releases across Stealth, CloudForte and InteliServe. And year-over-year, we are seeing a 48% increase in analyst coverage by the Gartner, IDC and Forresters of the world. And then lastly, our clients are really our biggest advocate. Our Net Promoter Score is at 52. And compare this to the industry average, per ITSMA, we are actually 58% above the industry average for all the IT services companies combined. And needless to say, this is pretty amazing and we take what they say seriously. Our performance, our incentive structure is actually tied to how well clients feedback to us in terms of our performance. So our client loyalty, as measured by renewal way of 95%, is really exceptional. And we have many, many active user group, special interest industry groups and innovation workshop that took place around the world with our current users on an ongoing basis. So from a client advocacy perspective, I would say a picture is worth 1,000 words. I invite you to hop on over to unisys.com/our-clients or you can navigate your way under About Us, you'll see Our Clients, you'll see in multi-living colors, the video endorsement, the testimonials of the successful digital transformation that many, many of our clients are able to accomplish with us as their partner and their enabler. And we have right now over 260 case studies with associated videos that you can peruse and take a look at. And these clients don't just show up on our website. They're actually showing up speaking at industry events, on online webinars. They truly are our best evangelists. And this is because of the great work and the outcomes that we're able to deliver to them. And so lastly, if you go to the next slide on awareness. Now that we have, we believe, a really strong brand platform, great thought leadership, good content and endorsement from our partners, from our industry analysts and clients, so I think we are in a strong position to garner awareness. And we do this via 3 integrated channels that you see in front of you: Earned on the left-hand side, owned in the middle and the paid media. And by the way, that is the priority that we follow to make sure that we're getting the best return on investment for marketing. So if I may start with the earned media front. So we create very unique client success stories, very unique signature research. I mentioned the Unisys Security Index. We also do the similar-themed Cloud Success Barometer to kind of dictate and to be able to provide insights to the market and control the conversation through really what clients are telling us, what is the migration, what is the adoption and the barriers and success that you're seeing. We also run another unique research called Digital Divide to provide unique insight to drive through the interest and preference for our digital workplace services. And as I mentioned, Peter's involvement with NSTAC and all of our involvement with EastWest Institute, Aspen, et cetera, really are giving us a whole lot of media attention and pickup. And Eric and Vishal as guest contributors to Forbes. They are, in addition, garnering credibility through thought leadership and, in addition, they're offering practical advice to the market at large. So in 2019, I measured this on a year-over-year basis. We saw a 8% increase in media coverage. Year-to-date, as of the end of Q1, which for us is same as calendar year, so as of the end of March, year-over-year in Q1, we're seeing a 28% increase in media coverage. The middle column is about our owned media. This is our digital storefront. So I have there a screenshot of our website as well as our podcast on the top and all the social media series that you see underneath, LinkedIn, Twitter, Facebook, YouTube, Vimeo SlideShare, Instagram, LINE, WeChat. These are all the social and digital engagement and properties that we use to amplify our voice. And we're pretty smart about this. We're leveraging search engine optimization. We will pay selectively for paid search only if necessary. And we do a lot of content syndication. And because a lot of publications out there love the content that we have to share on thought leadership, on advice, so they drive third-party traffic back to our site, and that's how we increase our ranking. So in 2019, for example, we have seen a 31.6% increase in social engagement. We have gained over 12,000 social followers. And this year, so far, because of security, because of the COVID-19, everybody trying to figure out how do I get my workforce to pivot to work from home safely, productively and easily, we're seeing a huge pickup in web traffic and session, especially to our security and services page. And right now, security alone, we're seeing an increase of 147% in page views. And then lastly, paid media. We run highly targeted advertising based on account and regional sales priorities. And the word that we use in this industry is called account-based marketing, but it is the right thing to do. So that we don't spray and pray, you're highly targeted because you can. We are designing our ads to reach our business decision-makers as well as technical decision-makers within these target accounts. And we use a mix of publications such as Wall Street Journal, The Economist, Forbes, Latin Trade. We do print, digital, radio and out-of-home such as airport and metro to reach our target buyers and so that we can stay top of mind. And our creative showcase, our purpose-driven brand that I mentioned earlier. And most importantly, we really talk about client outcome by industry, by services, by security. And today, we are doubling down on all things digital. And of course, like what Peter Drucker says, you can't manage what you don't measure. So we measure our paid media effectiveness religiously. So we look at not just the number of impressions, but we also look at click through rate, traffic to the site, time on site, increase in visits and actions taken. And I'm very happy to report that our advertising campaigns are consistently outperforming industry benchmarks. So in conclusion, I think the progress we're making on the marketing front is best summarized by third-party quotes. So I'm going to do a couple of quotes from Wikibon and ISG, 2 of our industry analyst partners. And one said, "The Unisys brand gains new life in a cloud-everything world." And the other said, "Not your father's Unisys." So needless to say, we -- our journey has just begun. We have indeed reenergized the brand. We are communicating our innovation. We're garnering important endorsements from our clients, partners and industry analysts. Now we're seizing on this momentum to grow mindshare as well as wallet share. Thank you for your time. And feel free to reach out to me at [email protected] if you have any questions. Mike, over to you.

Thank you, Ann, for that great overview of our brand and who we are today. I would also like to thank all the great speakers we've had on this audio file. Listening to this, you've heard from the bulk of the senior management team and I hope that through their commentary and the corresponding material we provided, that you got a good sense of how Unisys has evolved in recent years. We hope that this introduction to Unisys was helpful and left you with a solid understanding of the significant opportunities ahead of us due to our platforms and solutions, which position us well to capitalize on industry disruptors and address key areas of concern or opportunity for our clients. As Eric has illustrated in his material, we know we can compete and win against everyone in our space. Lastly, we hope that you feel as we do that we are a distinctive IT service provider due to our IP-led solutions, which are all underpinned with world-class security. Thank you for your time, and please let us know if you found this information helpful in better understanding Unisys. We look forward to speaking with you soon with our next opportunity being our Q1 earnings release, which is scheduled for April 28, 2020, at 5:00 p.m. Eastern. Thank you again for your time.