Unisys (UIS) investor relations material

ClearPath Forward ecosystem and capabilities

• ClearPath Forward is a secure, resilient mainframe ecosystem supporting mission-critical workloads across industries, with deployment flexibility spanning on-premise, private, public, and hybrid cloud environments.

• The platform integrates advanced security, AI-driven analytics, and quantum-resistant features, enabling clients to adapt to evolving technology and market demands while minimizing operational risk and cost.

• Value-added solutions like Data Exchange, ePortal, and A/B Suite enhance data access, application development, and integration, supporting modernization and long-term client engagement.

• ClearPath Forward delivers 99.999+% availability, processes 1 million transactions per minute, and maintains uncompromised user data.

• The ecosystem's flexibility and security make it difficult and costly for clients to migrate away, reinforcing high renewal rates and long-term relationships.

Financial performance and revenue trends

• Recurring revenue is stable and growing, with renewal rates exceeding 95% and pricing power supported by the platform's critical business integration.

• ECS revenue for 2024 was $628M, with License & Support (L&S) comprising 69% and Specialized Services & Compute (SS&C) 31%.

• L&S revenue has remained stable around $430M annually, with a 3-year average forecast of ~$400M starting 2026.

• L&S gross margin averages ~70%, and overall annual client retention is approximately 95%.

• CapEx investment in ClearPath Forward is steady, representing about a third of total company CapEx, focused on both maintenance and growth, with spend aligned to client-driven innovation needs.

Market perspective and industry trends

• Over 70% of Fortune 500 companies and 90%+ of financial institutions rely on mainframes for core operations, with mainframes supporting 95% of global non-cash transactions.

• By 2030, mainframe end users are projected to increase by 30% due to factors like sovereignty and energy constraints.

• Mainframes are foundational for resilience, security, scale, and speed, with AI and post-quantum security being integrated for future readiness.

• Clients are increasingly interested in performance, deployment flexibility, post-quantum security, and native AI capabilities.

• Continuous R&D investment aligns with market needs for extensibility, speed, and hybrid computing, ensuring long-term growth.