NCR : Investor Day 2020 Presentation

NCR Corporation

December 3, 2020

1

Notes to Investors

FORWARD-LOOKINGSTATEMENTS. Comments made during this presentation and in these materials contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1955 (the "Act") including statements that contain the words "expect," "intend," "plan," "believe," "will," "should," "would," "could," "may," "ought," "objective," and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to NCR's plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in these materials include, without limitation, statements about NCR's expected areas of focus and strategy to drive growth and create long-term stockholder value, including, but, not limited to, the Company's 80/60/20 strategy and accelerating NCR as a Service; NCR's expectations for financial performance through 2024; expectationsN O Nfor- acceleratingG A A PrecurringD I revenue;L U TstatementsE D EregardingP S the Company's Q4 2020 financial performance and the Company's estimated 2020 full year revenue; performance in the market and versus competitors; market share and growth; product introductions and competitive advantages; winning in the market; platform return on investment; NCR's cost reduction actions and their expected benefits in 2020 and beyond; NCR's financial objectives and expected impacts (headwinds and tailwinds) through 2024; and NCR's expected cash flow generation, redeployment and capital allocation strategy through 2024. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors listed in Item 1a "Risk Factors" of NCR's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 28, 2020, and those factors detailed from time to time in NCR's other SEC reports. These materials are dated December 3, 2020, and NCR does not undertake any obligation to publicly update or revise any forward- looking statements, whether asa result of new information, future events or otherwise, except as otherwise required by law.

NON-GAAPMEASURES. While NCR reports its results in accordance with generally accepted accounting principles in the United States (GAAP), comments made during this presentation and in these materials will include or make reference to certain "non-GAAP" measures, including: selected measures, such as free cash flow and adjusted EBITDA margin percentage. These measures are included to provide additional useful information regarding NCR's financial results,and are not a substitute for their comparable GAAP measures. Explanations of these non-GAAP measures, and reconciliations of these non-GAAP measures to their directly comparable GAAP measures, are included in the accompanying "Supplementary Materials" unless noted therein and are available on the Investor Relations page of NCR's website at www.ncr.com. Descriptions of many of these non-GAAP measures are also included in NCR's SEC reports.

USE OF CERTAIN TERMS. As used in these materials: the term "recurring revenue" includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, cloud revenue, payment processing revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.

These presentation materials and the associated remarks made during this presentation are integrally related and are

intended to be presented and understood together.

2

Vision & Strategy

Mike Hayford, President & CEO

3

Investment Thesis

NCR shareholder value creation will be driven by:

Mix shift to software	Recurring revenue	Margin expansion
and services	growth

4

Leader Across Our Business Lines

BANKING							HOSPITALITY
	RETAIL

Digital Banking		Enterprise			Restaurant Software
	Point of Sale
ATM			Payments
Other Software & Services
		Self-Checkout

5

Solutions That RUN Self-Directed Banking

ATM business - hardware		Digital Banking is
surrounded by annuity		$500M business today,
stream		24M users

6

Solutions That RUN The Store

Enterprise POS solutions		Self-checkout

7

Solutions That RUN The Restaurant

Aloha cloud-based restaurant solutions

8

NCR Executive Leadership Team

Mike Hayford

President & CEO

Owen Sullivan		Tim Oliver		Debra Bronder		Jim Bedore
EVP, Chief		EVP & Chief			EVP, General Counsel & Corporate
		SVP, Chief	HR Officer
Operating Officer		Financial Officer			Secretary

B U S I N E S S U N I T S

RETAILHOSPITALITYBANKING

	David Wilkinson		Dirk Izzo		Frank Hauck
			President & GM
	President & GM		President & GM

D E L I V E R Y T E A M S

LEAN FACTORYPROFESSIONAL SERVICESSW ENGINEERING & TECHNOLOGY

	Adrian Button			Mithu Bhargava
					Tim Vanderham
	EVP, Product & Service Operations			SVP, Professional Services			SVP, Chief Technology Officer
ENTERPRISE ACCOUNTS		CORPORATE MARKETING
		INFORMATION TECHNOLOGY
	Dan Campbell			Marija Zivanovic-Smith			Bill VanCuren
			SVP, Corporate Marketing,			SVP, Chief Information
	EVP, Global Sales
			Communications & Public Affairs			Officer

9

NCR's Commitment To ESG

NCR strives to be an ESG leader among

peer technology companies

ENVIRONMENTAL	SOCIAL	GOVERNANCE
ECO-FRIENDLY PRODUCT AND	ROBUST DIVERSITY, PRIVACY,	SENIOR ESG OWNERSHIP, BoD
FACILITY DESIGNS	CYBERSECURITY PROGRAMS	OVERSIGHT
E-WASTE AND PRODUCT	SUPPLY CHAIN OVERSIGHT,	ROBUST, NON-RETALITORY
RECYCLING PROGRAMS	CODE OF CONDUCT	WHISTLEBLOWER PROGRAM

10

Opening remarks + logisticsMichael Nelson, VP Investor Relations & Treasurer

		Vision & strategy	Mike Hayford, President & CEO
		Operational execution	Owen Sullivan, EVP, Chief Operating Officer
		& introduction to Business Units
		Banking	Frank Hauck, President and GM Banking
			Shawn Phillips, GM ATMaaS
			Doug Brown, President Digital Banking
		Retail	David Wilkinson, President and GM Retail
Agenda
Hospitality	Dirk Izzo, President and GM Hospitality
		Functional roundtable	Owen Sullivan
			Adrian Button, EVP Product and Service Ops
			Tim Vanderham, SVP and CTO
			Mithu Bhargava, SVP Professional Services
		Financial outlook: A path to 80|60|20	Tim Oliver, Chief Financial Officer
		Summary	Mike Hayford
		Chairman's remarks	Frank Martire, Executive Chairman
		Q&A	Mike Hayford, Owen Sullivan, Tim Oliver
		Conclusion	Mike Hayford

11

Executing Our Strategy

Owen Sullivan, EVP, Chief Operating Officer

12

2018: Siloed Model

FUNCTIONAL ORG MODEL

Customer left to navigate NCR = Confusion & Frustration

Banking Product

?

M anufacturing

M anagement

Professional Services

? ?

Banking Software

Engineering		Banking Hardware

Banking Services

Banking Finance

Services Sales		Banking Sales

13

Today: Industry-Aligned GM Model

BUSINESS UNIT MODEL

One accountable voice to customer

Industry GM Organization

BANKING RETAIL HOSPITALITY

Lean Fac tory		Softw are		Services
	Engineering
		Corporate Functional Support

14

Leader Across Our Business Lines

BANKING							HOSPITALITY
	RETAIL

15

Customer Screen shot

NCR Banking

Solutions That RUN Self-

Directed Banking

Frank Hauck

President & General Manager

16

NCR Banking Business

$3.1B 2020e Revenue

$.5B			▪ Win in Digital Banking
			▪ Broaden Digital First platform
$.9B	$1.7B		▪ Shift to cloud, SaaS & subscription
			▪ Maintain #1 self-service ATM share
			▪ Expand multi-vendor ATM business
Banking Software	ATM	Digital	▪ Grow ATM-as-a-Service
& Services	Hardware	Banking

Representative customers

17

NCR Banking ATM-as-a-Service

Shawn Phillips

General Manager ATMaaS

18

The Market is Shifting to ATM-as-a-Service

ATM-as-a-Service

```

Hardw are	Softw are	SLM and	ATM
		FLM	Monitoring

Incident	Management	Security &	Serv ice
Mgmt	Reporting	Compliance	Desk

ATM business

Subscription

Performance	Cash	Vendor	Adv isory
Management	Management	Mgmt	Serv ice

Everything a FI needs to RUN self-directed banking

from the world's #1 ATM provider*

* Source: NCR view based on 89,000 ATM shipments in 2019	19

The Economics of ATM-as-a-Service

Traditional: US Community Financial Institution, 25 ATMs

Cumulative: $1,650*

$1,050K $150K $150K $150K $150K

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

• ATM Hardware & Software
• Hardware & Software Maintenance

As a Service: Shift to As-a-Service model, predictable, recurring

TCV: $3,650*	$730K
$730K

$730K $730K

$730K

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

• NCR ATM-as-a-Service
• Including Hardware, Software & Service

*For illustrative purposes only

Hardware

Software

SLM and

ATM

Incident

Mgmt

Security &

Service

Performance

Cash

Vendor

Advisory

ATM

FLM

Monitoring

Mgmt

Reporting

Compliance

Desk

Mgmt

Mgmt

Mgmt

Service

Cleaning

20

NCR Digital Banking

Doug Brown

President Digital Banking

21

NCR Digital Banking - Leadership Market Position

Digital Banking $500M

24 Million

Digital Users

12% YoY Growth

650

Banks and Credit Unions

4.8

Star App Rating

Top 3 Mobile

in Consumer Experience (MagnifyMoney 2020)

20 of Top 35

North American Banks for Mobile Transactions

~2,250 Branches

live with NCR Digital First Teller

Industry Leader

IDC MarketScape

Celent 2020 Winner

22

NCR Digital Banking - Positioned for Growth

Digital

Banking

Superior customer experience

Innovation through fintech integration

Highest ROI platform

Bank and credit union domain expertise

23

NCR Banking - Growth Levers

Banking Growth

• Surrounding with recurring service

• • software
    ATM-CENTRIC
• Shifting to ATM-as-a-Service
• Reinvigorating our Digital Banking
• 
  DIGITALbusiness
  BANKING
• Broadening the Digital First platformATMs &

24

Leader Across Our Business Lines

BANKING							HOSPITALITY
	RETAIL

25

NCR Retail Core

POS Software Solutions

That RUN The Store

David Wilkinson

President and GM, NCR Retail

26

NCR Retail Business

$2.1B 2020e Revenue

Run your store end-to-end

Leading with digital, our next generation retail store architecture connects every customer touchpoint into a single, amazing experience that makes shopping effortless for your customers while making business easier, faster and more profitable for you.

ENTERPRISE
	SELF-
POS SOLUTIONS		CHECKOUT
$1.2B Business		$900M Business

Representative customers

27

NCR Retail Customers

Grocery & Big Box

Department &

Specialty

Convenience & Fuel

SMB

5%

9%

19%

67%

>1.5M checkout lanes worldwide*

* Source: NCR Product Management

28

NCR Retail Platform

▪ Simplifies the needed refresh cycle of our massive install base

• Customers can simply convert sites to the platform, add new capabilities, attach new services and NCR can expand wallet share
• Strong NCR value proposition of faster time-to-market,lower cost of ownership and improved tech availability
• We have the right sales and services coverage for this market

29

NCR Retail - Positioned for Growth

Retail Growth

Maintain self-checkout leadership and

grow with the market

Win the upgrade cycle for next-gen,

cloud-based bundled POS software offerings

30

Leader Across Our Business Lines

BANKING							HOSPITALITY
	RETAIL

31

NCR Hospitality Core

POS Software Solutions That

RUN The Restaurant

Dirk Izzo

President & GM, NCR Hospitality

32

NCR Hospitality (Restaurant) Business

$700M 2020e Revenue

6%

27%					▪ Over 100,000 sites worldwide
				▪ #1 Restaurant POS software provider in U.S.
		67%			(source: RBR 2020)
				▪ Half of the top 100 worldwide restaurant brands use NCR
						▪ 32 of the top 50 quick service restaurant chains use NCR
						▪ More restaurant employees are trained on NCR Aloha than
Small & Medium		Enterprise		Others	any other restaurant software
Restaurant		Restaurant

33

We Provide Everything To RUN The Restaurant

Restaurant management platform (Aloha)

Digital, mobile, contactless experiences

Wall-to-wall services

Monthly Subscription & Transactions

"We're delighted to work with NCR to integrate Grubhub into the NCR Aloha POS for a ready-to-deploy solution

that enhances the delivery
experience and boosts
efficiency for restaurant
operators.	"

34

Why We Will Win In The Market

Increase our share of wallet

Expand our market share - incremental site growth

Hospitality

Growth

Only 3% of our base is converted to Aloha Essentials

35

Functional Execution
							Roundtable
Adrian Button							Product & Services Operations
EVP, Product &							− Quality & cost efficiency
Service Operations
Tim Vanderham							Software Engineering
SVP, Chief Technology							− Scalable software architecture & discipline
Officer
Mithu Bhargava							Professional Services
SVP, Professional Services							− Integration touchpoint & innovation

36

A Global, Efficient Network Delivering For

Our Customers

14K

Engineers

285K

Units/Year

9.4M

Dispatches/Year

22M

Service Calls/Year

13M

Devices Supported

150K	Manufacturing Plant
Parts Shipped Weekly
Service Operations Center Hub
	Distribution/Fulfillment Center/Warehouse	37

NCR Platform Architecture

3rd Party Order Aggregators and Loyalty Providers

NCR Platform BSP/CSP

Buy Online/

Pick-UpIn-Store/

Restaurant/Branch

Mobile Ordering

and Order

Management

Data Analytics	Payment
and Business Ops	Processing

38

Professional Software Services

Delivering for Our Customers

4,100+	55+	7,100+	100+
Software Consultants	Countries	Projects Per Year	Packaged PS Offers

Run The Store	Run The Restaurant	Run Self-Directed Banking
▪ Services led migration to Next-	▪ Co-innovate digital makeline	▪ Modernize branch experience to self-
Generation Retail Software	experience leveraging Aloha	directed banking approach
Architecture	Essentials platform	▪ Advisory services to redefine
▪ Connected experiences across	▪ Order accuracy up 99%	consumer experience and create
physical to digital channels	▪ Wait times down 50%	upsell opportunities

• Enabling e-commerce, mobile and integration to their back-office systems

39

Financial Outlook:

A Path to 80|60|20 Success

Tim Oliver, EVP, Chief Financial Officer

40

Update on More Tactical Topics

Q4 2020		2021

• Results to date are consistent with Oct. 27th commentary
• • Revenue, EBITDA and cash flow expected to be similar to results in 2020 Q3
  • Productivity initiatives and asset reviews are ongoing
  • Cost reduction actions will achieve $125-150M of annual run-rate savings

• Annual planning process is nearly complete
• • Anticipate modest sequential improvement in end markets across the full year of 2021

No further 2020 updates or 2021 guidance today

41

		NCR 2020-2024 Financial Objectives
REVENUE		~ $7.4B	ADJ. EBITDA MARGIN %
									~ 20%
		~ $6.2B				~ 14%
2018A	2019A	2020E	2024E	2018A	2019A	2020E			2024E
FREE CASH FLOW		STRATEGIC EXECUTION
			$600-700M		2018	2019	2020	2024
	$400-500M		Software &	68%	65%	72%	~80%
		~ $2B to		Services
			Revenue
		Redeploy		Recurring	46%	46%	54%	>60%
				Revenue
				Adj. EBITDA	15%	15%	14%	~20%
				Margin
2018A	2019A	2020E	2024E
									42

Defining 80|60|20

80 %	…of NCR's revenue will come from software and services.
60 %	…of NCR's revenue will come from recurring revenue.
Defined as contracts where there is a predictable revenue pattern that will occur at regular intervals. This
includes hardware and software maintenance, cloud, payment processing, certain professional services
	arrangements, and term-based software licenses.
20 %	…goal for adjusted EBITDA as a percent of revenue.
Adjusted earnings before interest, taxes, depreciation and amortization as a % of revenue. Typical adjustments
include amortization as well as other special items, including pension, mark-to-market adjustment,
	amortization of acquired intangible assets, restructuring charges, among others.

43

			NCR Banking Financial Objectives
REVENUE			ADJ. EBITDA MARGIN %
		~$3.1B				~23%
						~18%
2018A	2019A	2020E	2024E	2018A	2019A	2020E		2024E
					Company avg.	Corporate overhead	Adj. EBITDA

				STRATEGIC EXECUTION
	Metrics to watch	Q3 YTD				2024
	2018	2019	2020

▪Digital Banking Revenue	$354.4M	Software &
69%	64%	71%	>80%
		Services
▪Digital Banking Registered Users	24.3M	Revenue
Recurring
49%	46%	55%	>60%
		Revenue
▪Recurring Revenue	$1.264B	Adj. EBITDA	17%	19%	18%	>20%
		Margin

44

NCR Banking Business Revenue Composition

DIGITAL BANKING

OTHER

BANKING

Software &

Services

ATM's

Products	% Attach
Online/Mobile Banking - DI/D3
	0%
Software - Remote Transactions
Professional Services - Digital Banking Consulting
Software - Enterprise Monitoring, Cx Marketing,
Security, Transaction Processing, Cash Management
Professional Services - ATM-Centric Consulting
	15-100%
Software - ATM Multivendor
In
Services - Implementation, Break/Fix	Ascending
Order
Managed Services and ATM-as-a-Service
Software - Interactive Teller Machine
Software - Middleware
ATM Hardware	100%

2020 Est. Revenue

$0.5B

$1.7B

$0.9B

45

Banking: Digital Banking

Financial Objectives

		REVENUE
		~$0.5B
2018A	2019A	2020E	2024E

ADJ. EBITDA MARGIN %

		~28%
2018A	2019A	2020E	2024E
		Company avg.	Adj. EBITDA

Banking: Other Software &

Services Financial Objectives

		REVENUE
		~$2.6B
2018A	2019A	2020E	2024E

ADJ. EBITDA MARGIN %

		~16%
2018A	2019A	2020E	2024E
		Company avg.	Adj. EBITDA
			46

NCR Retail Financial Objectives

REVENUE

ADJ. EBITDA MARGIN %

		~$2.1B				~18%
						~12%
2018A	2019A	2020E	2024E	2018A	2019A	2020E	2024E

Company avg.

Corporate overhead

Adj. EBITDA

STRATEGIC EXECUTION

	Metrics to watch	Q3 YTD			2018	2019	2020	2024
				Software &	63%	63%	67%	<80%
	▪Platform Lanes	12,642		Services
		Revenue
				Recurring
	▪SCO Revenue	$642M		37%	41%	47%	~60%
		Revenue
	▪Recurring Revenue	$717M		Adj. EBITDA	12%	12%	12%	<20%
				Margin

47

NCR Hospitality Financial Objectives

REVENUE

ADJ. EBITDA MARGIN %

						~ 16%
		~$700M
						~10%
2018A	2019A	2020E	2024E	2018A	2019A	2020E	2024E

Company avg.

Corporate overhead

Adj. EBITDA

STRATEGIC EXECUTION

Metrics to watch	Q3 YTD		2018	2019	2020	2024
		Software &
		70%	67%	75%	>80%
▪Number of Aloha Essentials Sites*	3,484	Services
Revenue
		Recurring	48%	51%	61%	>60%
▪Recurring Revenue	$311M	Revenue
		Adj. EBITDA	18%	13%	10%	~20%
* Subscription based sites	Margin

48

NCR Payments Business Financial Objectives

2020 Revenue: ~ $100M

2024 Revenue: ~ 20-30% CAGR

Retail

Hospitality

Non-NCR

NCR POS Addressable Market: $1.5B - $2B

49

Revenue Growth Bridge

BY CAUSE

2020E ~$6.2B

Price

Organic

Volume

Acq Volume

2024E~$7.4B

BY SEGMENT

2020E ~$6.2B

Banking

Retail

Hospitality

2024E~$7.4B

BY PRODUCT

2020E ~$6.2B

Hardware

Software

Serviices

2024E~$7.4B

50

Impact on Revenue of Shift to Recurring Revenue

Business Model

$600	Revenue $ millions
$500
$400
$300					Net Impact
$200
$100
$-
	2018A	2019A	2020E	2021E	2022E	2023E	2024E

Revenue recognized upfront under		Cumulative effect on revenue of shift to
prior business model		recurring revenue business model

Net Impact is expected to become accretive in late 2022

51

Adj. EBITDA Margin Growth Bridge

BY CAUSE

2020E ~14%

BY SEGMENT

2020E ~14%

BY PRODUCT

2020E ~14%

Product Mix Shift

Hospitality

Shift to Recurring

Retail

Productivity

Banking

2024E

~20%

2024E

~20%

Services

Software

Hardware

2024E~20%

52

2024 Free Cash Flow Generation

$1.0- 1.1B

Operating Income

$600- 700M

* Free Cash Flow

* Free Cash Flow excludes discontinued operations and pension contributions

53

Cash Generation and Redeployment

Cash Generation Opportunities		Redeployment Priorities

• Higher profitability
• Cap Ex Efficiency
• Cash cycle improvements
• • Services inventory
  • Invoice accuracy
  • Vendor management
• Business Linearity

Uses:	4yr. Total
▪Organic growth (Cap Ex)	$0-250M >Deprec.
▪Acquisitions	~$600-$800M
▪Stock buyback	~$400-$500M
▪Reduce Leverage	Remainder
Legacy Uses:
▪Pension	~$300-$400M
▪Disc Operations	~$100-$150M

Approximately $2 Billion in cumulative free cash flow

54

Debt & Preferred Stock Maturities Status

		5.250% Notes due 2030		6.125% Notes due 2029		5.000% Notes due 2028		5.750% Notes due 2027
		Term Loan B		8.125% Notes due 2025		Preferred Shares		Revolver
		AR Securitization		Pension Contributions

($ in millions)	$400
NCR is in a strong liquidity position…	$750
no major refinancing until 2025.	$500

					$650
				$1,100	$500
	$300			$275	$450
			2025-2030
2020	2021	2022	2023	2024*
* First "Put" Date Preferred - Current balance sheet value of Series A preferred : $275M

55

		NCR 2020-2024 Financial Objectives
REVENUE		~ $7.4B	ADJ. EBITDA MARGIN %
									~ 20%
		~ $6.2B				~ 14%
2018A	2019A	2020E	2024E	2018A	2019A	2020E			2024E
FREE CASH FLOW		STRATEGIC EXECUTION
			$600-700M		2018	2019	2020	2024
	$400-500M		Software &	68%	65%	72%	~80%
		~ $2B to		Services
			Revenue
		Redeploy		Recurring	46%	46%	54%	>60%
				Revenue
				Adj. EBITDA	15%	15%	14%	~20%
				Margin
2018A	2019A	2020E	2024E
									56

Call In With

Your Questions …

888-820-9413 Confirmation Code:1666001

57

Frank Martire

NCR Executive Chairman and Chairman of the Board

58

Investment Thesis

NCR shareholder value creation will be driven by:

Mix shift to software	Recurring revenue	Margin expansion
and services	growth

59

Dial-In:

Q&A 888-820-9413 Confirmation Code:1666001

60