Q1 2020 Earnings Call

Vice President Investor Relations. Thank you for taking the time to listen to the introduction to Unisys Investor module that we prepared.

Well, 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 and in person event.

In the meantime to help address many of the questions. We've been getting from investors, who are new to the story or who have not looked at the company in several years. We've put together. This online web cast designed to provide an overview of the business.

Hopefully this also provide 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 Hadow, President and COO.

All grouped up SVP products and platforms, and Chief Technology Officer, and interrupts Dol SVP and Chief marketing officer, with concluding remarks from Mike Thompson, SVP and CFO.

I would like to thank all of these senior leaders for their participation in this discussion.

We hope you all find a valuable and we look forward to building. Upon this the more in depth to 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 and this unprecedented time.

I will now panda discussion over to Peter.

Thank you coronary and I'd like to add my welcome to co workers or we are aware that we have many new investors and prospective investors. So since we recapitalized the company effectively in March with the sale of the U.S. Federal business, but we are really excited to take this opportunity to spend a little time with you.

Well and really provide a baseline for what unisys looks like today and what we expected to looked like in the future.

With that we will spend the next our annual spend it with five of US myself, Eric Auto Who's our president and Chief operating officer, and who really focus on the business drivers that are most relevant to the business today.

I'll go into who leads our products and platforms you know Chief Technology Officer will go into more detail in some of the solutions that Eric will discuss and that and rock stall, who is our chief marketing officer will talk not only about our vision and mission and our brands, 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 my Thompson, 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 four.

Which discusses our diversified recurring revenue base diversification. We believe is important it's been 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 covert 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 our international and so having the ability to serve those clients as we do in about a 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're talking about crowded infrastructure services, Eric will discuss that a little later and the two biggest pieces of those are actually what most people refer to as cloud 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 Cie S. Global workspace represents about 33 percentage points of those fit.

<unk>, so actually a as a majority of that revenue.

It has been very important to us, particularly around covert 19, as we haven't 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% BPL, a 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 SAS 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 covert 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 us federal business in March we still have us federal revenue, which comes through largely licensing and some services revenue.

That we are getting in providing services to actually I see which provides them to the federal government.

Financial services represents a 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%.

[noise] the Red column represents the way we contract for our revenue and here, we are a little different than many of our competitors. Our technology revenue again is mostly proprietary software.

Through either SaaS or license sales, but really through very long relationships are 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%, where we have here as nonrecurring or what people would refer to as project revenue again, we think thats at advantage.

In a time, where discretionary projects and project revenue.

Might not be the first things that are clients are looking to engaging.

If we turn now to the next slide which is slide five.

I'd like to cover three time frames.

Where we were as a company going into the cobot 19 situation since that points to how healthy we were going in.

What positive activity, we expect to accomplish during covert 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 cobot 90.

In the five years that Eric auto 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 were 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.

[noise], we have increased profit every year for the last four 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 to show.

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 covert 19 period.

We are not standing still.

Waiting for this to and 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 two new technology.

But we're even more focused in this covert 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 as old word actually choose 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're continuing our retooling efforts during the cobot 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 covert 19.

The third column speaks to what we have to do as we exit to covert 19.

Eric will also cover this in more detail. The short of it is we will be positioned for more revenue increased profits, which will help drive investments that are cash flow and engaged re skilled workforce and higher client satisfaction than even our industry, leading net promoter score.

52.

We need to be positioned for all of these things and we will have the team to achieve them I have a 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 leverage our strength.

This is well known for strong engineering of scalable and dependable products like our path forward.

And has long been a leader in user services and while all are still relevant.

They've evolved operate as platforms in the cloud.

In a very secure way and providing our clients are the path of digital operating model and rapid expansion to new sources of revenue.

As a company of over 100 years old we have long standing relationships.

That brings with it the challenge of changing what we're known for to what we are capable of in the future. So you have to change how do you sell from what you do.

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 mcdermott methods as we prepare for the digital economy.

We are already in development of a digital sales platform that will support self service pricing integrate with existing and emerging online marketplaces, such as Amazon.

The team to achieve this.

Efficiently and effectively we go to market by verticals have deeper knowledge of our clients business models and objectives.

We have narrow IP assets for 118.

Individual products for core platforms, which I'll touch on later in this presentation.

In a few industry applications and we focus our selling estimates then I'm over 40 countries to less than 20 key markets.

All of these ships have allowed us to maximize our talent in the right place improve our innovation speed to market and improved profitability.

As we move to slide seven.

Our opportunity is significant.

With 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 cyber security the digital transformations that by the way 66, 70% sale by whatever study you read is still a high number.

To cloud and adoption of AI and automation.

The recent Cove at 19 prices drove the world to go remote in weeks.

These skills gaps technical debt with legacy systems.

Lack of quality data and they ever increasing compliance and regulatory requirements that continue to be put upon businesses around the globe.

Digital as an experience rates and there are more options everyday to obtain that experience.

That is an outcome all companies not only have to figure out but have to sustain.

Most companies embarked on some form of the digital transformation many of Phil.

Mainly because they were clear on what they were looking to see.

If you think about digital it's more about creation or revenue streams and new sources of revenue not just optimizing the existing operating model cost structure, and that's where most people focus and thats why most of them fail to meet the objective from either a board or a Ceos perspective.

And business outcomes are a focus so as we look to provide our clients an environment of ever increasing as I say compliance regulatory and cyber attacks that are getting more sophisticated and more frequent every single minute.

And so into that the pandemic, we've just gone through the stone the world into a a radically different operating model and chains policies not just with government businesses, but also how we socially interact you get a pretty challenging environment operate in it also though provides opportunities for companies like units that demonstrate its value.

And create a superior experience.

We must remain relevant in our ideas pragmatic and our answers and aligns our client 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 tension 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 or net promoter score client surveys is that we have moved from being an escalator contract oriented company to provocative. We think we bring unsolicited ideas everyday to our client base and that has helped to not just expand wallet share with existing clients, but given us the references we need towards.

Track new ones as well.

We also tell them, what we're not we will not be the lowest price.

I think that is also beginning to set our reputation apart from just pursuing business in orders to establishing ourselves as a value creating organization.

We live to the next slide in and look at how we stand out one other thing going on that them about in the culture as we don't sell we solved.

And you've heard me already talked about outcomes.

Really aligned always through the go to market organization and client satisfaction as measured by net promoter score. It's an industry standard hear me refer to it as MTF.

Our compensation plans are tied to achieving our NPS go each year, all the way through the organization up to including myself.

This drives the behavior by accounting that service our class. They are listening actively solving to outcome not just selling stock while we can generate some revenue he will be lower and less overtime, we don't create the true business valued by living to those outcomes.

Pizza delivery is always important and we have worked to reconstruct processes policies to improve our ability to meet expectations of our client and deliver on their stated business objectives.

Not everything is planned though is covered 19 has shown us and clients need a responsive partner one that can be nimble and flex to the need and an accelerated timeline due to higher neat.

And to do so without compromising either party in a secure way.

And underscoring all of our design thinking inflation is our mindset around a secure world is not just our zone trusts approach, but about keeping our client business always on.

Knowing that bad actors login, but with units that they don't get out.

And then its confident the all executives are looking forward and say that breakout and the slide to protect some of our client commentary around these one of those areas.

Again, we're driven to listen were driven to solve.

And over the last few years that is showing 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 nine.

Our scale and reach.

We're smallness to be nimble the big enough to be creditable.

This slide just gives you a perspective, 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 RPM is your eight up yet we can deliver anywhere anytime.

We are 14 data centers six that units its own and eight that we also on work with co locators on.

We also have E data centers that we manage for our clients. They are actually on the client site. They are their data that we simply management for them.

Therefore security operation centers.

We have over 15 years of delivery managed security services to our clients.

We have 100 cost staff on hand in our security operating centers around the globe.

In addition to our localized service support.

Our dedicated security consultants.

We are absolutely in compliance with all of the certifications and reviews that you go through annually.

This R&D center I'm going to let Michelle group to our CTO and SVP of our products and platform team talk more about this but we've not lost the of engineering skills. We've actually added to it we have some of the most talented people I believe around the world Endless group and we have six of those centers to continue our innovation.

Ensure that we stay in a heck of a lot of the things that our clients will be needing from a technology perspective.

And of course, we ever 60 service desk and 12 command centers are started that predominantly service the call them from our clients around things there since they are having problems with our command centers.

I'm really focused 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 to build the Braves get online and really drives and make sure that we get fast resolutions to a major incident.

And you can see on the top right hand corner, where 16500 strong across all of these areas the regions in our R&D team.

We do utilized or shoring in one of the thing separates unisys apart in its and its people is we have 30, roughly 3600 killed engineered which basically if you were to compare us to a lot of Indian providers would skew our showing ratio, but they do.

Don't have that type of scope that those are actually great asset 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 set aiotv censored at a high connected world are going to need things to be replaced.

And we're looking to move our command centers on a security data or I'm, sorry service that into more software remote capabilities things that can be fixed not just through software, but also to be able to go out in service and that I believe it gives us a great advantage and it has to date been an advantage that very few people have a strength in the field engineering team like that.

The next slide we if you did slide really was designed this we report out to you in services and technology. We wanted to make sure you got clarity of how the products and services slow in each segment.

Note that our license fee revenues is reports under technology.

Really the major benefit of this view is provide clarity on how we build revenue.

As shown by Peter on his opening slide we ever train 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 improve in other areas of their business or environment. So many of these capabilities become projects that we sell in year and make up a nonrecurring portion of the revenue mix that Peter shown earlier.

Having these were able to expand our wallet share with existing clients.

At times these projects, where we enter into a relationship and it leads to a large managed services engagement.

This was the case or the large insurance company that needed a security security compliance audit conducted and remediation plan to meet new regulatory requirement that engagement led to a managed services contract for cloud and infrastructure for the 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.

Touch on enrollment into Shaw will expand on further gives us inherent value that most partners have to solve too.

Curious seamless across our platforms, not an afterthought or bolt on.

While this may look like a lot of things we do.

For the reach and scale complexity of business today is a pretty focused set of capabilities and there is a minimum set of these capabilities you have to how to be creditable.

And we have organized construction them in such a way that they support the four core platform since 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 cloud fourth day.

My Forteo is really about cloud being done right being done securely and being done in a reliable manner.

That's what we have organized and put.

Those capabilities, we think a club a cloud as the not just infrastructure, but also application.

Most people don't actually talk about infrastructure anymore, they really focus on what they need to accomplish what application or functionality do they need for getting that done and then inherently somewhere along the line theres infrastructure design, that's necessary underneath that and Thats, how we look at our cloud Forte offerings.

We work with all that provides theaters youre Microsoft.

We work with Google, we can work with any cloud. This 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 the crop allowance.

Because we want to understand what they're trying to solve to each one of those have their own strengths and capabilities and we want to make sure we get the best outcomes our client.

Intelliserv is our platform around our digital workplace services.

Lot of work has been done by our technology team and just in the last few years on this really enables organizational digital transformation through a consultative approach years ago, Unisys really started down the path for saunas.

We are groups of people within organizations in the engineer need different types of desktop applications and capabilities.

There is someone who works in human resources into that refine a based thinking we have really designed this platform to be that personal.

And ensure that the user experiences matching to the business needs of that individual and what they do.

It changes the way we weren't today to merge reality.

You know this platform expands not just in the service that but also through our field services and engineering team and we have been able to reduce the number of engineers and use more centralized talented skills and with the use of augmented reality glasses be able to guide people through salveen 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 RPH, all the things behind it to drive.

Our productivity to be more predictive to be able to answer questions without people in the use of our boss.

And then we have clearpath forward, which again has been longstanding 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 a hardware based and appliance based.

The fish and his team has 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 into the cloud.

But again, we still have many client highly dependent on this it's scalable it's reliable it handles large volumes of transaction.

And it's never been bridge and I think Thats one of the great assets in the world today of cyber terrorism, and 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 it in our core platforms is is as I said security, it's and everything we do it's how we approach any solution in any outcome. So we're looking forward with our clients.

We may have the best cloud answer we now have the that application answer is the workplace answered, but it can't be secure and it can't keep our clients from being breach Dennis of no use.

We have a zero trust mentality.

Dynamic isolation is bringing the approach in the way that we look at how we could you answer a lot of our class questions around can you keep me from being in the news and what we worked on is if you have a.

A breach you have minutes isolated to understand it before it becomes a companywide.

And you're in the news.

With our dynamic isolation themselves, we can identify a threat and within seconds. We.

We've tested it recently within 10 to 15 second we can actually isolate that Brett, but thats the technical side of the business value of it is you business is always on you don't have to turn off your company you don't have to turn off the branch of manufacturing plant nothing gets turned off because we've isolated so quickly and you're not in news and that's the.

Thing that as I mentioned earlier, the 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 to digital economy, and we have to keep the out of the news and from paying those because in a lot of the.

Station in Brett regulatory changes around the world are bringing is you know the ownership to breaches and Thats, where we focus our security effort and mindset.

Just wanted to spend a bit more on the broader security solutions as we move to the next slide.

We're more than just sell sell it absolutely a critical IP. It has a lot of intrinsic value and that has also helped us separate ourselves in many deals that we have one 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 trust chat.

Right, which is a cyber risk management tool that really helps companies understand and assessor vulnerability and at the same time prioritize with us with the cost of not addressing that is so not everybody has been limited, but our clients have to have a way to understand the risk prioritize them and then on line that budget to address the one of the Grace.

Risks their company and Thats, what trust second done.

We bridges the gap between the T cell in the board, we look at things with Truseq does that force gives you a very dashboard sensible way to have a business conversation about a very technical conversation.

We obviously have partnerships.

We're big believers that we can't do everything ourselves there are very talented and smart companies around the world and then if we aggregate them with us in a sequence we have a superior experience anchor for most of our clients.

That allows us to focus on what we do great which is in which is what self is done for us.

We look at risk management, physical and logical a full lifecycle security really and again Bashaw will walk you through a bit more is thinking in the road map of where we're taking not does or sell 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.

You look at the companies that we compete again and there are few listed here, we actually look at 19 in our peer set as we track.

[music].

It's pretty serious.

Over the last three years.

One significant amount of contracts.

Now we look at total contract value in whole and no. It really breaks down into on average about 22% of our contracts are in new logo, another 22% or any scope. So thats, where we already have business with a client say cloud infrastructure.

And now they want us to do their digital work by services, that's a whole new scope with a client.

Do you look at as we get us about 16% on average over the last years from expansion that 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 look clients to serve and also grow from it also says that our offerings are relevant and they are something of value today.

In client base, because are beginning to buy more from us.

And that is also funds that we measure.

If you look after the right.

We've won some really top notch brands.

And very competitive.

Because.

European Central Bank.

Equal is renewal it's been a client for a while we are one that in a recompete and also expanded our scope.

We haven't 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 and those are 100 to 200 million dollar contract and again heavily contested.

Even in Australia is around security and then a management.

Very large contract there and then Bancolombia is again a renewal once the expansion it so from our perspective, we punch above our way we're not we're not fearful of the larger competitors. We obviously went against them and when again as I said earlier, we make sure that we're not going to be the lowest price, but we're going to be highest value and I am.

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's designs to to deal with difficult times Tobin 19, it's certainly stress many companies.

As I think back across the conversation. We just hired we have long term contracts that gives a good base of revenue to depend on those long term contract or relationships, so and those relationships span bias in times like this and they have.

It's also proven out are designed around business continuity. So if we can move workloads around the world based on things are happening either politically geographically.

The pandemic, obviously, our was challenging as governments within the lockdown, but again no service interruption store comps.

So we have hardened business practices.

I think our geographic diversification our so.

Capability, and where we are around the globe our scale in Reais.

Really a lot of our solutions are really geared toward outcomes. Therefore, they are designed around helping clients reduce are confident same time.

We have solutions. It also allow them to fan and take advantages of opportunities as they present themselves.

I think our strong government business is also something it is an attribute in times like this obviously governments are sending them to help businesses around the world within the packages as well as.

Bailouts on again those are the things that we have built around we have great relationships with and I think overall his built this company to endure times like this.

With that I'll turn shall give to our CTO and senior vice president of products and platforms.

Thank you Eric for the introduction my name is a shock uptime to CTO four units is responsible for creating all our products and platform.

And I would love to take you through the journey over the next 15 minute.

On why our strategic platform are setting up units as for long term success for reference were on slide 15.

Drives the right strategic technology investments.

Unisys.

Looks regularly for what on large and growing markets getting created by technology disruption.

Where we can establish long term differentiation.

Both such large and growing markets in 2020 in beyond are you a team cloud computing artificial intelligence and containers and coburn either.

If you looked at IPO tea on Slide 15, you can see it's really coming of age.

From the CR onwards, so you have 21 billion devices and growing at a high CAGR of 30% going forward.

Next if you look at cloud computing and you'd look at all the data from a routine.

It can now get to cloud cloud computing is expected to grow to 500 billion by 2023.

Again on a large tiger of 22.3%.

What's kind of created as a huge opportunity.

But all of data and cloud that needs to be analyzed that's where you've got this market thats 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 CAGR of 37.3%.

And then if you run out of the stop it's not just about the infrastructure transformation, but also a huge opportunity around developing applications that a new way with container then coburn needed and almost 75% of enterprises will be running applications. These you know that EMEA. Microsoft. So then contained.

Yes.

And our guest feedback over need Dave in 2022.

And worth the 30 Bucks in today and that the gain market is growing at a large CAGR of 40%.

And underlying all of these or cyber security, which is also having a large opportunity created from providing cyber security for all your t. cloud AI or or containers.

And you know, we all know when the middle of Cowen 19, and so certainly some of these markets can perhaps accelerate our perhaps maybe not grow as big in 2020, but the bottom line in each of these are large and high growth market and present a massive opportunity.

For your assets. So what have we been doing about it in the last 18 months.

Yes, it has really been investing to take advantage of this technology disruption.

And as Youve seen future slides, our offerings are evolving to four differentiated platforms, which are cloud Forte Intelliserv health and Clearpath forward in each of them is taking advantage of this disruptions. So let's go to the next slide but to slide 16.

The here in the Fysixteen, we talk about the first three important platforms that Genesis of an accident and things are cloud forteo for making hybrid cloud simple and delivering the outcomes.

Intelliserv are transforming all your workplace services, whether baby for call center for managing those devices or for your feet Engineering and then talc.

On a blended always on security, but all live on resolutions. So let's talk about each of these platforms.

If we think about cloud the two big challenges in hybrid cloud our cost and complexity.

With cloud 40, but fundamentally reducing the infrastructure and operating cost with very innovative use of area that you see on the slide.

And also we're taking the complexity away.

And and you know public cloud put 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. The digital guardrails that can affect each of this cloud workloads and policies against hundreds of his best practices and compliance.

Standards to get the cloud right, and that's where you'll see that infrastructure and application assessment in the slide.

In addition to these two our capabilities that secure copel need given containers hopes of accelerating the migration of these apps security to this cloud and enabling both infrastructure and application transformation with cloud 14.

Hopefully that gives you some color.

Now, let's talk about digital workplace services.

The to the challenges in the digital workplace services are really around how do you drive a great experience at the right costs for the end use those in the enterprise.

Leverage to the workplace services and also how do you get this platform deployed individually mind.

To address the Salander Intelliserv has a lot of innovation being both in it.

So.

This intelligence platform. We if you looked at some of the components, we have and industrialized intellia.

Very few thing back to AI with automation and all of this is integrated to provide a great experience on any device better and use those long [noise].

And also the platform is a dry it's easy to deploy.

It's hosted in Azure cloud.

With all the relevant integration, including Servicemaster back where we can address for the two big challenges in workplace services that you talked about.

Let's talk about security.

In the World of security and we talk about units of securing a tomorrow, it's a big opportunity and focus for us in the world of security the tree big challenges that our cell platform is really marching towards.

One.

Csos walk the security to work across the entire digital landscape.

And so they want to platform, that's not just to point platform, but something that will work across everything part of the digital landscape number two they want to deliver true outcomes in a fast money and finally, they want a platform that can also supported the evolving needs like we see everybody knows that are mort workforce and how to address that.

South is truly unique where it can reduce the attack surface clopay assets not just for data centers not just for cloud, but also for things like our your T. devices that you see on the slide and even containers and coordinated and so truly for the entire digital landscape.

Secondly to deliver the fast outcomes that csos, one stealth integrates seamlessly with other security platforms. In fact, we have order doesn't integrations today with platforms like service now.

Oh, it can dynamically isolate any device or a user in 15 second or less.

Making your enterprise truly readily and.

There's nobody who can do it that fast and truly move at the speed of threat recap.

And finally, if it think about the poke challenge around agility.

Felt of very relevant in today's call with 19 environment, where the workforce of that are more and the workforce needs to access all of these.

Application securely and tell faster more secure and easy to deploy.

And scale to tens of problems that you those than VPN.

We recently announced that you're seeing a lot of interest in the and due to all of these reasons South one the most innovative cyber security product of the year in February 2020 at RSC.

So hopefully you feel now.

Good color on to all of these three platforms.

Next.

Go to slide 17 next and talk about clear path forward.

Well those are few who've been pulling that sort of why you know the terrible for what is very significant for us both in terms of it's a significant part of what technology revenue.

It's also leading platform and industry for processing, our laws number of transaction in a secure manner.

So let's talk about whatever doing to really said this went up for long term success.

So first a clear path really forward continues to be a very significant platform of investment Florida.

The investments that we're directing our to ensure that we can both retained the workloads that the customers are running today and clear path and also we're trying to make clear path attractive for the modern world. So we can attract the workload so tomorrow.

Protect existing investments of the customers, ensuring the clear, but can normally provide the things that it is known for which our security given its never Innodata has never been taken out from explicitly high visibility and high transaction throughput.

We're also ensuring but it can support customers modernization plan.

And that's where as you can see on the chart you know things like.

Portal, which gives us the ability to leverage any type of more than frontend any type of micro services.

And things like debt exchange, which enables us flexibility to leverage both clearpad databases as well other Bon data base was really come into being so that's a big part of a strategy to support that modernization.

The second part of a strategy is we want to get people flexibility.

We're giving them the ability to run clear pot anywhere they choose whether it's the integrated system that you see on the left of the slide or whether it's a soft first TV, so back where they could choose any hardware. They walked in fact, the airport as hardware agnostic.

I started this year, but also giving them the flexibility to run clear path.

Well, we're in cloud starting with I sure for us any wrench between W. ads.

And in that opportunity also run it integrated which tells that create actually not just flexibility, but also an additional opportunity for us for those customers. The third element or strategy is to give our customers choice to expand care back to new workloads or the future on adjacent applications like.

On the data the care by pod.

And we're doing the by supporting New modern languages things like Java or fighting in addition to our traditional languages, a clear path to support it.

And we're making sure that long you every supporting these languages, we're trying to make sure that these languages can run securely.

And thats liver leveraging container and just containers will be secured by scout.

You can see work, giving our customers lot of flexibility and choices.

And their ability to really take clearer path for their margin architecture of the more than one.

So to summarize.

What you've seen so far from slide 15, 16, and 17 is.

How units says is investing in creating differentiated platforms in hybrid cloud with cloud 14.

In digital workplace services within talent so.

Pound insecurity with stealth.

And finally in high performance secure computing with clear path and when do you think this platform the vast technologies like and I like Microservices running in containers to really set ourselves up for long term success.

Back way the technology disruptions that we've discussed in the beginning are going to really reinforce up both the the value. These platforms can bring and also the innovation in that.

I would now like to turn it to our Chief marketing officer and to take you to our marketing strategy. Thank you.

Thank you Michelle.

Hello, everybody by now you were just getting a pretty good understanding of our strategy state of the business product and services as well I think enabling technology platform.

Now I'd like to spend 15 minutes to take you to our marketing strategy and how do you storytelling awareness campaign, and our ecosystem, consisting our partners in industry analysts picking and a salary mindshare and wallet share.

So all things, Dan without brand and the promise, helping to lever simply put what businesses and what business outcomes client can expect from us.

That's why healthy brand scale, we periodically revitalize operating platform to recycle strength of our path to success of today and where we are going tomorrow. The units is blamed carrying substantial equate.

The fact that Unisys discussed that by 21 of the top 25 airline Atlanta Airport more than 500 financial institutions and over 3000 government agencies around the world cylinder business Inserv citizens everyday we are an essential enabling digital businesses today.

So in early 2018, we survey the market.

Just a lot analysis and went about differentiating guinness's anything trusted plan. So we like our strength in security and IP services and this is really the right now as 79% of company inside of it I'd gene so that they want to do business with a technology brands that in now.

And on the highest level as you see Bolivia on the fly our vision is to intense people's lives.

The QM reliable attune technology, and we do this by building high performing security centric solution for the most demanding businesses and governance and ultimately we are all about better outcomes for clients and this is underpinned by our quarterly just have you seen kind of be which.

Consist of curiosity creativity clients from Trust me and most importantly integrity.

And I have to say being in marketing, where we we'd love to be storytellers. So we made this new plan platform easy and scientific news and we have completely transformed the unisys brand internally and externally. So our messaging tagline creator appear on that site advertising social channels.

Collateral events, a large or small physical or virtual.

And as long as our office. The course poster you know signature we even have a a brand mobile app. So we have I hope you still a sense of purpose mission and swagger.

Our associates on Silicon Valley to Blue Belt, Pennsylvania, attest to Georgia, Some Pollo, London, Budapest, India, Manila, China, all the way to setting.

So and you can go to the next slide let's talk about it that brand what.

It's different about begins with brand compared to other technology and IP services company out there. So if you're looking at we really rise above our competition in three key areas security.

Nation to IP technology, driven solution and client success.

And the marketing communications teamwork, lockstep, with Peter and Eric and Michelle's organization to inspire and educate and substantiate our unique offering so that we can gain both my share as well it wallet share. So let's look at security for a moment, we are absolutely leading into six.

Sure and insane and we do the doing a unique combination of thought leadership style and our security services. We are highly visible on the international stage two Peter's work with the White House National Security Telecommunications Advisory Committee also known as and stack and we're leaving it's cyber security.

The Moon shot project and in addition, the core security leadership team here our units.

We are actively participating in Aspen Institute last Institute Cyber Security Tech of course, with many of our Tech partners and all of which really drives the next generation security policy technology that for a safer and more Brazilian security infrastructure.

In addition on the thought leadership front, we have our signature research. Many of you may have heard about the units in security Index now is Ashley it's 14 here and in measured year over year changes.

Consumer concerns related to national personnel financial in Internet security in 2019 alone.

This is the units the security in that garnered over 2100 publication articles in less than four months and by the way over 1400 Oh.

Internationally on television and radio segment and these are things I, we don't pay for this is people covering the insight because they find that you spoke.

The stealth security software, it's one of the field software encryption and micro segmentation solution out there actually endorsed by entertain the National Security agency. So the product into capability a certified to protect sensitive system for over 20000 tons worldwide.

And our security offering consistently when the hottest product that are essay from C.. So online CFO magazine CRM, just mean over the past few years and then lastly, well we think security is in everything we do we really means that it is embedded some provisioning endpoint security as part.

Our digital workplace services to securing work load on the cloud whether it'd be like Asia, as your or surface now or using styles.

Our infrastructure services to build security and so at that setups in our application services. It really yeah in everything that we do so this thought leadership on security combined with all the great product marketing thought we do in partnership with technology and services.

We deliver campaign and I can tell you is showing even from a demand gen perspective that last year. It year over year were seeing a 64% increase in security.

Alone.

Now do you look at innovation.

As I mentioned and also the show described this in more detail our IP based technology driven solutions based on stealth Intelliserv in college sports right.

Really is the best in breed, we building AI watching IR team I do capability and they continue to differentiate unisys and what we do now the industry analysts have taken notice.

Our digital workplace services position as a magic quadrant leader by Gartner.

And stealth its position as its strong performer in the first issue of the fourth straight year old Trust ways.

Microsoft for example is paying advertising to promo, California, Asher capability, because they recognize that we are leader in the migration in managed services in lighting migraine claim to the cloud and so last year, we have launched easily over 10 major energy.

You should be leases across scout, Consequently, intelliserv and year over year, we are seeing 848% increase in analyst coverage by the Gartner IBCM posters at the World and then lastly, our client I really our biggest advocate our net promoter score is that.

82, and compare that to the industry average IP estimate, we're actually 58% above the industry average for all the IP services companies combined and Needless to say this is pretty amazing and we took what they think seriously our performance our incentive.

Structure, its 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%, it's really exceptional and we have many many active user group special interest industry groups and innovation work.

Shot that took place around the world what our current users on an ongoing basis. So from a client occupancy perspective, I would say a picture is worth a thousand work I invite you to hop on open to Unisys Dot com slash, our bash clients, owing to navigate our way under.

About as you'll see our claims you'll see in multi living colors. The video endorsement that testimonial a successful digital transformation that many many of our clients are able to accomplish with with us as their partner and their enabler and we have right now over 206.

In case study with associated video side, you can produce and take a look at and these clients don't just show up on website, they actually showing up speaking a industry, Japan online webinars. They truly are our best evangelist and business because of the acquaint work and the outcome that way.

<unk> able to deliver it to them.

So lastly.

Because the next slide on awareness now that we have we believe a really strong brand platform great thought leadership good content endorsement on my partners for my industry analysts inclined. So I think when you're in a strong position to garner awareness and we do this between integrated channel that you've seen kind of.

All right on the left in time, Oh, I'm in the middle and the pay media and by the way that is a priority that we follow to make sure that we're getting the best return on investment for marketing. So we then they start with a earned media front. So we create very unique claims success story they unique.

Signature research I mentioned, the unified Security index.

We also do the similar thing called success barometer to kind of take pain and to be able to provide insight to the market and control the conversation to 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.

Research count digital divide to provide unique insight to try to the interesting preference.

Digital workplace services, and as I mentioned Peters involvement with and that and all the are involved in a witness weapons that you asked and et cetera, really aren't giving us a whole lot of media attention and pick up and everything to show as guests contributors to Forbes. They are in addition, garnering.

Credibility to thought leadership and in addition, the offering practical advice to the market and large so in 2019 I measure this on a year over year basis, we saw 8% increase media coverage here today as the end of Q1, which brasses seem a calendar year.

So as at the end of March year over year in Q1, we're seeing a 28% increase in media coverage.

The middle column is about our only the this is our digital storefront. So I have there is screenshot our website as well as our podcast on the top and all the social media theories that you see underneath linking Twitter Facebook inconvenient, Sasha Instagram line, we check on fees.

All the social and digital engagement and properties that we use to amplify our boys and were pretty smart about this we leveraging synch search engine optimization on we will pay selectively paid search only if necessary and.

And we do a lot of content syndication and because a lot of publications out there I love the content that we have to share and thought leadership on the advice. So they try third party traffic back to our side and Thats, how we increased our ranking so in 2019 for example, we have seen a 31.6% increase in social.

Engagement, we have gained over 12000, social followers and this year so far.

Because the security because of the code that 19, everybody trying to pick a how do I get my workforce to pivot to work from home safely put attitude easily once in a huge pick up let topic in session, especially to our security and services page and right now security alone was he inc.

347% in page views and then lastly paid media.

We run highly targeted advertising based on account and regional sales priorities and they're worried that we used in this industry is call account based marketing, but it is the right thing to do so that you don't spraying play you highly targeted because you can we are designing our to reach our business decision makers.

That's why with technical decision makers looking to target accounts and we use the mix a publication such as Wall Street Journal, the economist Forex Latin Trey we can print digital radio and auto home such as airport and Metro to reach our target buyers and so that we can state top of mind and.

Creator 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're doubling down on all thing digital and of course like what Peter Truckers that you can't manage what you don't know.

Sure. So we measure our paid media effectiveness religiously. So we look at not just the number of impression, but we also look at click through rate traffic to the site pilot site, increasing visits and action taken and I'm very happy to report on advertising campaigns are consistently outperforming industry benchmarks.

So in conclusion I.

I think the class where they came on the marketing fun, it's best to summarize by third party quote some gonna do a couple of close probably keep on and I asked you to on our industry analysts partners and ones that they use this brand gained new life in a cloud everything world and the other side not the fathers.

Uniform.

So needless to say, we we are journey has just begun we have indeed, we energize the brand where our communicating our innovation, where garnering important endorsement from our client partners industry analysts now where things going on this momentum to quell mindshare as well as well.

Sure. Thank you for your time and feel free to reach out to be at even without the at Unisys Dotcom. If you have any question.

Mike over here.

Thank you and 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've got a good sense of how unisys has evolved in recent years.

We hope that this introduction to Unisys was helpful. Unless 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 IP 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 and 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 five P.M. Eastern Thank you again for your time.