DXC Investor Day

© 2021 DXC Technology Company. All rights reserved.

DXC Investor Day

June 17, 2021

2© 2021 DXC Technology Company. All rights reserved.

In an effort to provide investors with supplemental financial information, in addition to the preliminary and unaudited financial information presented on a GAAP basis, we have also disclosed in this press release preliminary non-GAAP information including: earnings before interest and taxes ("EBIT"), EBIT margin, adjusted EBIT, adjusted EBIT margin, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), adjusted EBITDA, non-GAAP income before income taxes, non-GAAP net income, non-GAAP EPS, organic revenues, free cash flow, net debt, net-debt-to-adjusted EBITDA leverage, and net debt-to-total capitalization.

We believe EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, non-GAAP income before income taxes, non-GAAP net income and non-GAAP EPS provide investors with useful supplemental information about our operating performance after excluding certain categories of expenses.

We believe organic revenues provides investors with useful supplemental information about our revenues after excluding the effect of currency exchange rate fluctuations for currencies other than U.S. dollars and the effects of acquisitions and divestitures in the periods presented. See below for a description of the methodology we use to present organic revenues.

One category of expenses excluded from adjusted EBIT, non-GAAP income from continuing operations before tax, non-GAAP net income and non-GAAP EPS, incremental amortization of intangible assets acquired through business combinations, may result in a significant difference in period over period amortization expense on a GAAP basis. We exclude amortization of certain acquired intangible assets as these non-cash amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Although DXC management excludes amortization of acquired intangible assets primarily customer-related intangible assets, from its non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and support revenue generation. Any future transactions may result in a change to the acquired intangible asset balances and associated amortization expense.

Another category of expenses excluded from adjusted EBIT, adjusted EBITDA, non-GAAP income from continuing operations before tax, non-GAAP net income and non-GAAP EPS, impairment losses, may result in a significant difference in period over period expense on a GAAP basis. We exclude impairment losses as these non-cash amounts, generally an acceleration of what would be multiple periods of expense and do not expect to occur frequently. Further assets such as goodwill may be significantly impacted by market conditions outside of management’s control.

There are limitations to the use of the non-GAAP financial measures presented in this report. One of the limitations is that they do not reflect complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Additionally, other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes between companies.

Selected references are made to revenues on an “organic basis” so that certain financial results can be viewed without the impact of fluctuations in foreign currency rates and without the impacts of acquisitions and divestitures from “organic basis” financial results, thereby providing comparisons of operating performance from period to period of the business that we have owned during all periods presented. Revenues on an “organic basis” are non-GAAP financial measures calculated by translating current period activity into U.S. dollars using the comparable prior period’s currency conversion rates. This approach is used for all results where the functional currency is not the U.S. dollar.

A reconciliation of GAAP to non-GAAP financial measures can be found in DXC’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021

Non-GAAP Financial Measures


All statements in this presentation that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” These statements represent current

expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved. Such statements are subject to numerous assumptions,

risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control.

Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the coronavirus disease

2019 (“COVID-19”) pandemic and the impact of varying private and governmental responses that affect our customers, employees, vendors and the economies and communities

where they operate. For a written description of these factors, see the section titled “Risk Factors” in DXC’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021,

and any updating information in subsequent SEC filings.

No assurance can be given that any goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such

statements which speak only as of the date they are made. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any

events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events except as required by law.

Forward-Looking Statements


Our New BrandDXC Investor Day


We are DXC

Delivering

eXcellence for our

Customers and Colleagues

Deliver... We do what we

say we are going to do.

Values

Collaborate... We work

as a team – globally and

locally.

Care... We take care of each

other and foster a culture

of inclusion and belonging.

Do the right thing… We act

with integrity.

Community... We believe in

stewardship and building a

sustainable company that

supports our communities.

Mission

Be an IT services company using the power of

technology to build better futures for our

customers, colleagues, environment and

communities, helping our customers deliver

business impact, and be the employer of choice

DXC Investor Day


STABILIZATION

PHASE

Playbook Phases

We are

here

Complete

FY21

FOUNDATION

PHASE

FY22

ACCELERATION

PHASE

FY23/FY24

DXC Investor Day


FY21 Accomplishments

People / Culture Attrition Inspired / Engaged

Customers Challenged Positive

Revenue / Margin Trajectory Declining Improving

Marketplace Losing Winning

Balance Sheet Highly Leveraged Strong Balance Sheet

Past Today

DXC Investor Day


Customers

Net Promoter Score (NPS)

Revenue

Book-to-Bill

FY21 Evidence

Margin

DXC Investor Day

People

Debt

Employee Engagement


Focus on

Customers

Optimize Costs Seize the MarketInspire and Take Care

of our Colleagues

Financial Foundation

Our Transformation Journey Steps –Foundation (FY22)

Go

als Financial

Foundation: Increase discipline,

remediate the

material weakness,

and improve cash

flow / earnings

power

Increase Employee

Engagement:

Continue to attract

and retain talent

Stabilize Year over

Year Organic

Revenue Growth:

-1% to -2%

Expand Adjusted

EBIT Margin:

8.2% to 8.7%

Book-to-Bill:

BtB of over 1.0x with

mix of renewals and

new work

DXC Investor Day


Today’s Agenda

Inspire and Take Care of our Colleagues

Optimize Costs - Delivery

Seize the Market – Enterprise Technology Stack

Financials

1

2

3

4

5

Focus on Customers

DXC Investor Day




Our People First Strategy

Listen. Seek to understand. Act at pace.



Our Global Leadership Team

CEO

Mike Salvino

Americas

Tom Pettit

Asia Pacific

Seelan Nayagam

Analytics &

EngineeringDmitry Loschinin

Americas

Jim Brady

Insurance & BPO

David Swift

EMEASteve Turpie

Security

Mark Hughes

Delivery

Vinod Bagal

Strategy

Michael Corcoran

Sales and Platinum Accounts

Jim Smith

Region & Business Leadership

Board Secretary

Zafar HasanAsset Protection

Tim Weir

Finance

Ken Sharp

HR

Mary Finch

Legal

Bill Deckelman

IT

Chris Drumgoole

Office of CEO

Kristin Slattery

Delivery, Strategy and Sales Leadership

Corporate Function Leadership

Modern Workplace

Mike McDaniel


Marketing

Brenda Tsai


Our Focus

Rewards and

Recognition

Career GrowthTransparent

Decision Making



Our Evidence

Engagement

56 72

CEO Approval

35 80



Focus on Customers


DXC’s Uniqueness as Defined by Our Customers

• Customer intimacy and seeing the “new DXC”

• Institutional knowledge to run the mission critical systems

• Business impact through technology

Focus on Customers


Customer Accounts

$6.4B

$2.8B

$7.5B

Americas APAC EMEA

175

2500

Platinum Rest of Portfolio

Revenue by Region

$10.8B

$5.9B

Platinum Rest of Portfolio

Number of Accounts Revenue by Account Type

2675

$16.7*

$16.7*

Focus on Customers

*FY21 revenues excluding dispositions ($B)


Americas Platinum Accounts

6

9

1440

>$200M $100M-$200M $50M-$99M <$50M

69

By Account Size

Focus on Customers

Zurich

Insurance

Group Ltd.

Representative sample


EMEA Platinum Accounts

29

2140

>$200M $100M-$200M $50M-$99M <$50M

72

By Account Size

Focus on Customers

Representative sample


DXC Operating Model

A CUSTOMER’S PERSPECTIVE

Focus on Customers


Investments in our Customers

Platinum Customer

Relationships

Account Management

Technical Sales Consultants

on all Platinum Accounts

1

2

3

Focus on Customers


Optimize Costs -Delivery


Stabilized Delivery

P1s reduced by 54%

from 87/mo. in Q1 FY20 to 40/mo. in Q4 FY21

MTTR reduced by 17%

from >250 mins in FY20 to ~210 mins in FY21

(target was 240 mins)

SLA penalties reduced by 96%

from ~$20M at FY20 start to $0.7M in Q4 FY21

260248

230

197

146

114

147

119

Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21

303

209

262

233210

178

241

210

Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21

19.217.9 17.6

12.2

8.1

5.8 5.2

0.7

Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4 FY21

Optimize Costs

Priority 1 (P1) Mean time to restore (MTTR) Service level agreement (SLA) penalties


Driving Business to Global Innovation & Delivery Centers (GIDC)

Regional

Delivery Centers14,000 Colleagues

GIDCs47,000 Colleagues

Newcastle, UK

Rabat, Morocco

Adelaide, Australia

San Jose, Costa Rica

New Orleans, LA, USA

Puerto Rico

Sao Paulo, Brazil

Buenos Aires, Argentina

Dalian, China

Manila, Philippines

Ho Chi Minh City, Vietnam

India

Chennai

New Delhi

Hyderabad

Bangalore

Kuala Lumpur, Malaysia

Sofia, Bulgaria

Bratislava, Slovakia

Wroclaw, Poland

Warsaw, Poland

Eastern Europe

Total Delivery Employees – 98,000 Voluntary attrition stabilized at 13%48% at GIDC Locations

Optimize Costs


Real Estate

465

0

100

200

300

400

500

Buildings

Contractors

23%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

FY20 FY21 FY22

Head Count Reduction

GIDC

-7%

15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

FY20 FY21 FY22

Head Count Increase

Automation

1,600

0

2,000

4,000

6,000

8,000

10,000

12,000

FY21 FY22

Head Count Elimination

Optimize Costs

Optimizing Costs in Four Key Areas


Server / VM

Database

Application

Anomaly

Detected

Network

• A single, unified platform that provides the

foundation for DXC services

• Enables a unique view of technology

performance across the stack, using a rich

data model to fuel AI capabilities

• Full stack engineers work hand-in-glove with

smart machines to detect and resolve, predict

and prevent

• Supports customers wherever they are on

their modernization journey

• Optimizes current and future IT investments

Optimize Costs

DXC Platform X


Simplified Experience

Easier to do

Business with for

our Customers

Simplified Tools,

Processes, and

Technology

Easier to Work

@ DXC

Optimize Costs


DXC’s Technology JourneyOptimize Costs

Data-based Decision MakingMeasuring NPS from our colleagues to drive our

programs and processes. Data drives decisisons.

Virtual Digital WorkplaceInvest in our digital workplace to increase productivity

and security, enabling a global, virtual workforce

that affords our team greater mobility and efficiency.

Employee

Satisfaction

Experience-

driven

Processes

Integrated

Security

Happy

Customers


Seize the Market –Enterprise Technology Stack


Enterprise Technology Stack

INSURANCE

BPaaS AND BPO

APPLICATIONS

IT

OUTSOURCING

MODERN

WORKPLACE

ANALYTICS &

ENGINEERING

SECURITY

CLOUD

FY21

REVENUE ($B)

GROWTH

OPPORTUNITIES

$1.5

$1.8

$4.0

$0.5

$1.5

$4.7

$2.7

• Insurance Data & Analytics

• Insurance BPO

• Horizontalal + Vertical Expansion

• Analytics

• Data Cleansing & Management

• Custom Applications Modernization

• Horizontal Expansion

• Cybersecurity

• Security in Everything

• Traditional IT Modernization

• Horizontal Expansion

• Distributed Workforce

• Consumer-like Experience

• Hybrid Cloud

FY24

GROWTH

Seize the Market

GB

SG

ISG

BS

GB

SG

ISG

ISG

IS


Financials


Book-to-Bill

FY21 Evidence

MarginRevenue

Financials

Debt


Moving From Sequential to YoY Organic Growth

(6.8%)

(2.4%)

1.7% 0.4%

Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21

(11.0%)(9.8%)

(10.5%)

(7.0%)

Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21

Financials

Sequential Organic Growth % Change YoY Organic Growth % Change


FY22 Financial Targets

YoY

Organic Revenue

Growth

AdjustedEBIT Margin

EPS(Non-GAAP)

Annual FCF(CFO less Cap. Ex.)

(1%) – (2%) 8.2% – 8.7% $3.45 – $3.65 $500M

Financials


Compelling Evidence

Delivering on Our Commitments

Sequentially

Stabilized Quarterly

Revenues

Expanding Margins Optimizing CostsWinning in the

Marketplace

Last 3quarters

Last 3quarters

~$550M savings in FY21

Last 4 quarters

>1xbook-to-bill

Financials


FY24 Outlook

Longer-Term Financial Targets

YoY Organic

Revenue

Growth

AdjustedEBIT Margin

Non-GAAPEPS

Annual FCF(CFO less Cap. Ex.)

1% – 3% 10% – 11% $5.00 – $5.25 ~$1.5B

Financials


Financial Foundation Priorities

- Disciplined capital allocation program

- Investing in our people and offerings

- Improve cash flow generation

- Portfolio shaping

- Reduce expense to ~$550M in FY22

and ~$100M in FY24

- Accelerate virtualfacilities model

1

StrengthenBalance Sheet

2

Foundation

4

CashGeneration

3

Restructuring & TSI

5

CapitalAllocation

- Reduce debt by over $6B

- Approaching targeted debt ratio

- Remediate Material Weakness

- Disciplined finance execution

- Establish Capital Budgeting Process

- True earnings power - Maintain investment grade credit rating

Financials


• Remediating our material weakness

• ~75% new finance leadership

• Dedicated team experienced transforming

processes, controls and remediating material

weaknesses

• Improving financial disclosure: IR website,

enhanced earnings materials, cash flow

presentation

• Creating transparency into what matters –

building a culture of accountability

Material Weakness

Culture

Talent

Accountability

Financial FoundationFinancials


1.8M+hours of noncompliance

formal learning in DXC

University completed by

DXC employees in FY20

100K+people benefited from 24

community development projects

in India to improve education,

environment and upskilling

20%reduction in

greenhouse gas

emissions in FY21

12%reduction in energy

consumption

in FY21

Environment, Social & Governance HighlightsFinancials

Achieved a top score of 100 in the

2020 Disability Equality Index

Named on Newsweek’s list of America’s

Most Responsible Companies 2021 for

environmental, social and corporate

governance performance

Awarded a gold medal by EcoVadis

in 2021 for our outstanding

sustainability performance

Named on 3BL Media’s 2021 list of

100 Best Corporate Citizens for

outstanding environmental and

social performance

Accolades

Global Reporting Initiative (GRI) reporter

Reporting Frameworks

CDP respondent since 2018

Reporting through the lens of the

Sustainable Accounting Standards

Board (SASB) in 2021

Integrating Task Force on

Climate Related Financial

Disclosures (TCFD)

standards into strategic

climate reporting in 2021


• Committed to investment grade;

demonstrated by our actions

• Reduced debt by $6.5 billion in past 3

quarters

• Expect to approach $5 billion in debt

outstanding in Q1 FY22

• Relatively low debt maturities through FY24

• Net debt to EBITDA leverage ratio improved

from a high of 2.4x to 1.0x

$12.0B

$9.7B

$6.2B$5.5B

Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21

Strengthened the Balance Sheet

2.2x2.4x

1.2x1.0x

Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21

Financials

Improving Net Debt to EBITDA Leverage Ratio(1)

Outstanding Debt

(1) Net debt for Q3 FY21 is calculated by adjusting cash balance as of 12/31 for taxes earmarked for sale of U.S. State & Local HHS;

adj. EBITDA is on a last-twelve-month as reported basis; as of 3/31 - $2,543M

Defined at end of presentation

.


Restructuring and TSI

Lower Restructuring & TSI Expense Drive >$500 million in FCF in 3 Years

$1,148M

$866M

$570M

$909M

$550M

$300M

$100M

FY18 FY19 FY20 FY21 FY22 FY23 FY24

Financials


Low High

Reduce TSI and Restructuring to ~$100M by FY24 $650 $750

Implement Disciplined Capital Budgeting 150 250

Facilities Optimization 100 300

Reduce Capital Leases 100 200

Working Capital Optimization 100 200

Unwind Take-or-Pay Purchase Commitments 50 100

Portfolio Shaping 50 150

~$1.2B ~$1.9B

Cash Flow Opportunities($ in M unless noted otherwise)

Financials


Lease

Repayment

Invest in the

Business

35%

10%

55%

Longer-Term Capital Allocation

Capital allocation tethered to free cash

flow to protect investment grade credit rating

Priorities:

Free Cash

Flow

Allocation

Committed to Investment Grade – Protecting Our Franchise

Share

Buyback

Financials

• Invest in the business

• Share buybacks while valuation

remains attractive

• Dividend: reassess policy when

valuation aligned to market


❑ Win in the market – book to bill >1

❑ Sequential revenue stability

❑ Strengthen the balance sheet

❑ Achieve organic revenue growth of (1%) to (2%) in FY22

❑ Remediate material weakness and improve governance score

❑ Reduce restructuring and TSI

❑ Continued margin expansion

❑ Improve free cash flow

❑ Resume capital deployment to shareholders

Financial Goals

✓

✓

✓

Financials



Financial Exhibits


(1) Defined at end of presentation

.

Year-Over-Year Organic Revenue Growth Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Total FY21

Total Revenue Growth (7.9)% (6.1)% (14.6)% (8.9)% (9.4)%

Foreign Currency (1) 2.0% (1.6)% (2.3)% (4.6)% (1.7)%

Acquisitions (3.8)% (0.3)% (0.1)% (0.4)% (1.1)%

Dispositions (1.3)% (1.8)% 6.5% 6.9% 2.6%

Organic (1) Revenue Growth (11.0)% (9.8)% (10.5)% (7.0)% (9.6)%

GIS Revenue Growth (14.8)% (9.9)% (11.1)% (4.8)% (10.3)%


Acquisitions (0.2)% (0.2)% — % — % (0.1)%

Dispositions (0.1)% (0.1)% 0.4% 0.5% 0.2%

GIS Organic (1) Revenue Growth (12.7)% (11.9)% (13.1)% (9.3)% (11.8)%

GBS Revenue Growth 0.7% (1.9)% (18.6)% (13.4)% (8.5)%


Acquisitions (8.4)% (0.3)% (0.2)% (0.7)% (2.3)%

Dispositions (2.6)% (3.3)% 14.0% 14.3% 5.8%

GBS Organic (1) Revenue Growth (8.5)% (7.0)% (7.0)% (4.0)% (6.6)%

Supplemental Financial Information

Non-GAAP Reconciliation: Organic Revenue



.

Sequential Organic Revenue Growth Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21

Total Revenue Growth (6.5)% 1.2% (5.8)% 2.3%

Foreign Currency (1) 0.8% (3.1)% (1.3)% (1.6)%

Acquisitions (0.1)% — % — % (0.3)%

Dispositions (1.0)% (0.5)% 8.8% — %

Organic (1) Revenue Growth (6.8)% (2.4)% 1.7% 0.4%

GIS Revenue Growth (7.1)% (0.7)% 2.4% 0.8%


Acquisitions — % — % — % — %

Dispositions (0.1)% (0.1)% 0.4% 0.1%

GIS Organic (1) Revenue Growth (6.2)% (4.1)% 1.3% (0.9)%

GBS Revenue Growth (5.8)% 3.1% (14.3)% 4.1%


Acquisitions (0.1)% — % — % (0.8)%

Dispositions (2.3)% (0.7)% 17.5% — %

GBS Organic (1) Revenue Growth (7.6)% (0.2)% 2.1% 2.0%


Non-GAAP Reconciliation: Organic Revenue


EBIT to Adjusted EBITDA Reconciliation

EBIT to Adjusted EBIT (in millions) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Total FY21

Net (loss) income $(199) $(246) $1,103 $(804) $(146)

Income tax (benefit) expense (26) (60) 875 11 800

Interest income (23) (25) (28) (22) (98)

Interest expense 106 96 82 77 361

EBIT (1) (142) (235) 2,032 (738) 917

Restructuring costs 72 265 104 110 551

Transaction, separation, and integration related costs 110 101 96 51 358

Amortization of acquired intangible assets 148 152 144 116 530

(Gain) loss on disposition of businesses - - (2,046) 42 (2,004)

Pension and OPEB actuarial and settlement losses 2 - - 517 519

Impairment losses 190 190

Debt extinguishment costs - - - 41 41

Adjusted EBIT (1) 190 283 300 327 1,102

Depreciation and amortization 492 525 475 478 1,970

Less: Amortization of acquired intangible assets (148) (152) (114) (116) (530)

Adjusted EBITDA(1) $534 $656 $661 $691 $2,542

EBIT Margin (1) 4.2% 6.2% 7.0% 7.5% 6.2%

Adjusted EBIT Margin (1) (3.2)% (5.2)% 47.4% (12.2)% 6.3%



.


Segment profit: Segment revenue less costs of services, segment selling, general and administrative, depreciation and amortization, and other income, excluding the movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities and the related economic hedges, restructuring costs, transaction, separation and integration-related costs, amortization of acquired intangible assets, pension and OPEB actuarial and settlement losses and gain on disposition of businesses

Segment profit margin: Segment profit as a percentage of segment revenue

Earnings before interest and taxes (EBIT): Net income (loss) less interest expense, interest income, and income tax expense (benefit)

Earnings before interest, taxes, depreciation and amortization (EBITDA): Net income (loss) less interest expense, interest income, income tax expense (benefit), depreciation expense, and amortization expense

EBIT margin: EBIT as a percentage of revenue

Adjusted EBIT: EBIT excluding restructuring costs, transaction, separation and integration-related costs, amortization expense related to acquired intangible assets, pension and OPEB actuarial and settlement losses and gain on disposition of businesses

Adjusted EBIT margin: Adjusted segment EBIT as a percentage of revenue

Adjusted EBITDA: Adjusted EBIT excluding total depreciation and amortization expense

Free cash flow: Cash flows from operating activities excluding capital expenditures for property and equipment, transition and transformation contract costs, and software purchased and developed

Capital expenditure: Equal to the sum of purchases of property, equipment, and software, and payments on capital leases, less proceeds from sales of assets

Net debt: Total debt, less cash and cash equivalents

Net debt-to-EBITDA leverage: Calculated as the ratio of net debt to EBITDA

Net debt-to-total capitalization: Calculated as the ratio of net debt to total capitalization

Organic revenue: Excludes the impacts of acquisitions and divestitures from financial results on a constant currency basis, thereby providing comparisons of operating performance from period to period of the business that we have owned during all periods presented

Constant currency revenue (cc): Non-GAAP measure calculated by translating current period activity into U.S. dollars using the comparable prior period’s currency conversion rates


Non-GAAP and Other Definitions

Documents

DXC Investor Day