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Confidential | © 2016 Unisys Corporation | All rights reserved. 1 Peter Altabef | President & CEO Unisys Annual Meeting of Stockholders www.unisys.com/investor April 28, 2016

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Page 1: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 1Peter Altabef | President & CEO

Unisys Annual Meeting of Stockholderswww.unisys.com/investor

April 28, 2016

Page 2: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 2

Disclaimer

Statements made by Unisys during today's presentation that are not historical facts, including those regarding future performance, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ from expectations. These risks and uncertainties are discussed in the company's reports filed with the SEC, copies of which are available from the SEC and from the Unisys Investor website.

This presentation includes non-GAAP financial measures. The non-GAAP measures have been reconciled to the related GAAP measures and we have provided reconciliations within this presentation.

Page 3: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 3

Overview of Unisys and

2015 Results

Accomplishments in 2015

Focus for 2016

Page 4: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 4

Unisys at a Glance

143Years of offering

products & services

$3.0BIn 2015 revenue$

300government agencies worldwide

use Unisys solutions

> 60 million air cargo transactions per month are processed through Unisys

systems

Serves over half of the top 25 banks and 10 of the world’s top

insurance companies

Building one of the largest cloud-based, on-demand U.S. state government computing environments

>1,500Clients

130+Countries

>20,000Associates globally

18 of the top 25 global airlines rely on Unisys solutions

More than 90 of the Fortune Global 500 companies utilize Unisys services to improve productivity and customer satisfaction

Page 5: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 5

Full Year 2015: Unisys Revenue Profile

Page 6: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 6

Application Services

Cloud & Infrastructure Services

Security Services

End User Services

Business Process Outsourcing

Horizontal Service

Initiatives

ClearPath ForwardTM

Services

StealthTM

Technology Products

Corporate

Initiatives

Sectors

Government

Commercial

Financial Services

Initial Vertical

Target Industries

Justice, Law Enforcement, Border Security

Life Sciences / Healthcare

Travel / Transportation

Commercial / Retail Banking

Unisys Strategic Footprint

Unisys IP /

Software

Page 7: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 7

$M (excluding EPS) FY15 FY14 Y/Y Ch

Services Revenue

Technology Revenue

Total Revenue

$2,606

$409

$3,015

$2,786

$571

$3,356

(6%); 2% in CC

(28%); (22%) in CC

(10%); (2%) in CC

Operating Profit Margin

Non-GAAP Operating Profit Margin*

(1.8%)

5.8%

4.6%

6.8%

(640 bps)

(100 bps)

Diluted Earnings (Loss) per Share ($2.20) $0.89 NM

Non-GAAP Diluted Earnings per Share** $2.26 $2.36 (4%)

Free Cash Flow*** ($213) ($91) NM

Adjusted Free Cash Flow*** ($6) $92 NM

Financial Results

* Unisys recorded pretax pension expense during 2015 and 2014. During 2015, Unisys recorded a pretax charge in connection with cost reduction actions and other expense. In

order to provide investors with additional understanding of the company's operating results, these charges are excluded from the non-GAAP operating profit margin.

** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction actions and other expense. In an

effort to provide investors with a perspective on the company's earnings without these charges, they are excluded from the non-GAAP diluted earnings per share calculations.

*** To better understand the trends in our business, we believe that it is helpful to present free cash flow, which we define as cash flow from operations less capital expenditures.

Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. Adjusted

free cash flow provides free cash flow before the company’s pension contributions or cost reduction payments in an effort to provide investors with a perspective on the

company’s free cash flow generation before these items.

Page 8: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 8

2015: Establishing a Strong Foundation

Implemented industry-centric go-to-market and globally integrated delivery• Streamlined operating model and defined roles emphasizing accountability

Strengthened leadership• Highly capable and experienced team in place and aligned with our strategic focus

Reduced costs• Launched initiative to create competitive cost structure and rebalance global skill set

• Captured $100M in annualized savings in 2015 and executing toward $200M in 2016

• Enhanced operational and delivery efficiencies

• Reduced bureaucracy and layers

Identified and targeted investments for growth initiatives• Integrated our security solutions to drive growth

• Prioritized key investments across our intellectual property portfolio

Page 9: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 9

2015: Winning New Business

Commercial

• Merck named Unisys as global end-user

services provider

• Two U.S. air carriers highlighted flexibility and

functionality when selecting Unisys’ cloud-based

operations and accounting systems

• PBF Energy chose Unisys StealthTM to protect

critical systems and IT assets

Financial

• Lloyds Bank selected Unisys to integrate core

banking system and internet and digital platform

• Banco de Brasilia chose ClearPath ForwardTM

to support growth, enhance efficiency and

strengthen security

Public Sector

• New South Wales government designated

Unisys to design and deploy its digital

government transition initiative

• The European Union selected Unisys to

strengthen border control and data security

Federal

• The Department of Transportation selected

Unisys to provide cloud migration services

• U.S. Patent and Trademark Office named

Unisys to deliver implementation and best

practice consulting for IT Service Management

Page 10: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 10

2016: Focusing On Execution

Non-GAAP Operating Profit Margin: 7% – 8%2015: 5.8%

Adjusted Free Cash Flow: $160M – $200M2015: ($6M)

Revenue: $2,775M – $2,875M 6.3% – 2.9% Y/Y decline in constant currency vs. 2015

Increase profitability• Continue to expand cost reduction initiatives

and services delivery optimization

• Pursue higher margin services revenue mix

Improve free cash flow• Increase profitability

• Lower capital expenditures and develop

capital-light model

Strengthen go-to-market• Deepen vertical capabilities and expand

security solutions

• Further leverage Unisys IP and software assets

Deliver on our revenue guidance

2016 Guidance

Page 11: Unisys Annual Meeting of Stockholders · ** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction

Confidential | © 2016 Unisys Corporation | All rights reserved. 11

Thank you