Q4 & FY 2023 Earnings Report

Supplementary Materials

March 4, 2024

Notes to Investors

FORWARD-LOOKING STATEMENTS. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements can generally be identified as forward-looking because they include words such as "expect," "target,"

"anticipate," "outlook," "guidance," "intend," "plan," "confident," "believe," "will," "should," "would," "potential," "positioning," "proposed,"

"planned," "objective," "likely," "could," "may," or words of similar meaning. NCR Voyix Corporation ("NCR Voyix" or the "Company") intends for 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 the Company's plans, targets, goals, intentions, strategies, prospects, or financial outlook, including modeling considerations, and statements that do not relate to historical or current fact, are examples of forward-looking statements.

Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that could cause the Company's actual results to differ materially include, among others, the following: challenges with transforming and growing the Company's business, including the Company's ability to attract new customers, increase use of the Company's platform by existing customers and cross-sell additional products and solutions; the Company's ability to compete effectively against new and existing competitors and to continue to introduce competitive new products and solutions on a timely, cost-effective basis; the difficulties and risks associated with developing and selling complex new solutions and enhancements, including those using artificial intelligence; the timing and implementation of the Company's cost reduction initiatives; the Company's ability to successfully complete and integrate acquisitions or other strategic transactions and to realize the anticipated benefits associated with the same; the failure to achieve some or all of the expected strategic benefits or opportunities expected from the spin-off of NCR Atleos Corporation ("NCR Atleos"); any unforeseen tax liabilities or impacts resulting from the spin-off of NCR Atleos; the impact of cybersecurity incidents on the Company's business, including the April 2023 ransomware incident, and efforts to prevent or mitigate such incidents and any related impacts on the Company's operations; efforts to comply with applicable data protection and data privacy laws; domestic and global economic and credit conditions; downturn or consolidation in the financial services industry; risks and uncertainties associated with the Company's payments-related business; disruptions in the Company's data center hosting and public cloud facilities; retention and attraction of key employees; defects, errors, installation difficulties or development delays; failure of the Company's third-party suppliers; a major natural disaster or catastrophic event; geopolitical and macroeconomic challenges or events or acts of terrorism; environmental exposures from the Company's historical manufacturing activities; risks associated with the Company's indebtedness; the Company's failure to maintain effective internal control over financial reporting and disclosure controls and procedures and its ability to remediate material weaknesses in its internal control over financial reporting; and other factors identified in "Risk Factors" in the Company's filings with the U.S. Securities and Exchange Commission, which are available at https://www.sec.gov.

You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date of this presentation.

N Y S E : V Y X 2

Notes to Investors

SPIN-OFFINFORMATION. On October 16, 2023, NCR Voyix completed the spin-off of NCR Atleos Corporation ("NCR Atleos") as an independent, publicly traded company. The historical financial results of NCR Atleos are reflected as discontinued operations in NCR Voyix's consolidated financial statements for periods prior to the completion of the spin-off. Accordingly, the financial information included in this presentation and the associated remarks has been recast to reflect the treatment of NCR Atleos as discontinued operations. However, certain costs historically allocated to NCR Atleos do not meet the definition of expenses related to discontinued operations for purposes of GAAP requirements regarding the reporting of discontinued operations. These costs have been included in NCR Voyix's results from continuing operations, even though NCR Voyix is not expected to incur any additional such costs following completion of the spin-off, and primarily include costs of services and selling, general and administrative expenses. As a result, NCR Voyix's GAAP and non-GAAP combined segment and consolidated results in this presentation and the associated remarks may not be comparable with estimates previously reported. To address this, NCR Voyix has provided Adjusted EBITDA, which adjusts for these costs.

In addition, NCR Voyix was not able to cease all NCR Atleos-related operations in all foreign countries simultaneously with the spin-off. As a result, some of these transfers occurred during the fourth quarter of fiscal 2023 and the first quarter of fiscal 2024, with more expected to occur in the future. Each of these transfers from continuing operations will impact NCR Voyix's segment and consolidated results as we retrospectively recast historical financial information for additional operations that become categorized as discontinued operations. As a result, NCR Voyix's GAAP and non-GAAP combined segment and consolidated results in this presentation and the associated remarks and in future public disclosures may not be comparable with estimates previously reported.

As a result of discontinued operations treatment and post-2023 transfers and planned transfers of NCR Atleos-related operations in foreign countries, NCR Voyix's GAAP and non-GAAP combined segment results, segment results and consolidated results in this release may not be comparable with estimates previously reported. To provide enhanced comparability of combined segment results and consolidated results between periods, NCR Voyix has provided Adjusted EBITDA, which adjusts for these items.

NON-GAAPMEASURES. While the Company reports its results in accordance with generally accepted accounting principles in the United States, or GAAP, comments made in this presentation include or make reference to certain "non-GAAP" measures, including selected measures such as revenue, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS. These measures are included to provide additional useful information regarding the Company's financial results and are not a substitute for their comparable GAAP measures. NCR Voyix's definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. Explanations of these non-GAAP measures, as well as a statement of usefulness and purpose of each such measure are included in the appendix of this presentation.

N Y S E : V Y X 3

FY 2024 Guidance

METRIC

FY 2024E

Total Revenue

$3,600M - $3,700M

Software & Services Revenue

$2,700M - $2,750M

Hardware Revenue

$900M

- $950M

Adjusted EBITDA

$632M - $657M

Adjusted EBITDA Margin

17.5% - 17.7%

Adjusted EPS

$0.84

- $0.94

Free Cash Flow

$155M

- $185M

Non-GAAP Tax Rate

27%

- 29%

N Y S E : V Y X 4

FY 2024E Guidance Detail

$ in millions

Revenue

Adjusted EBITDA

Initial FY 2024 Outlook (Investor Day-- Midpoint)

$3,923

$680

Full year impact of divestitures1

(55)

(25)

Atleos commercial agreements2

(30)

(2)

Hardware & Hardware-related3

(145)

(25)

Other4

(43)

+17

Total Post Spin Adjustments

(273)

(35)

FY 2024 Midpoint

$3,650

$645

FY 2024 Outlook (4Q 2023 Call)

$3,600 - $3,700

$632 - $657

  1. Represents the quarterly and full year 2023 impact of the non-core payments and Austria-based hardware divestitures completed in 4Q23.
  2. Represents lower than expected amounts from commercial agreements with NCR Atleos.
  3. Represents revised guidance for Hardware & Hardware-related revenue and EBITDA for the year.
  4. Other revenue includes the negative impact of business performance related items across all three segments. Other Adj EBITDA includes the Other revenue impact, offset by additional cost takeout opportunities identified in the annualized $100M cost savings plan.

N Y S E : V Y X 5

FY 2023 Revenue

$ in millions

Q1

Y-o-Y

Q2

Y-o-Y Growth

Q3

Y-o-Y

Q4

Y-o-Y

FY

Y-o-Y

Growth (%)

(%)

Growth (%)

Growth (%)

Growth (%)

Retail (Normalized)1

$528

2%

$553

2%

$552

0%

$544

-2%

$2,177

0%

SW & Services Revenue

$327

2%

$358

9%

$356

6%

$347

0%

$1,388

4%

Hardware Revenue

$201

1%

$195

-8%

$196

-10%

$197

-6%

$789

-6%

Restaurants (Normalized)1

$208

7%

$220

1%

$227

6%

$221

3%

$876

4%

SW & Services Revenue

$152

12%

$155

9%

$163

14%

$158

7%

$628

11%

Hardware Revenue

$56

-3%

$65

-13%

$64

-10%

$63

-7%

$248

-9%

Digital Banking

$137

0%

$141

8%

$150

8%

$151

8%

$579

6%

Other (Normalized)1,2

$16

-38%

$14

-22%

$15

-12%

$25

56%

$70

-9%

SW & Services Revenue4

$13

-41%

$11

-39%

$9

-36%

$22

47%

$55

-20%

Hardware Revenue

$3

$3

$6

$3

$15

Normalized Revenue1

$889

1%

$928

2%

$944

2%

$941

2%

$3,702

2%

SW & Services Revenue

$629

2%

$665

7%

$678

7%

$678

4%

$2,650

5%

Hardware Revenue

$260

0%

$263

-9%

$266

-9%

$263

-5%

$1,052

-6%

Reconciliation back to reported

Divestitures3

$15

$14

$12

$3

$44

NCR Atleos delayed country transfers4

$18

$25

$22

$19

$84

Total Revenue (as reported)

$922

1%

$967

2%

$978

2%

$963

0%

$3,830

1%

1 Retail growth rates are normalized for the impact of a non-core payroll divestiture in 2022. Restaurants 2023 $ amounts and growth rates are normalized for the impact of the Austria-based hardware divestiture in 4Q23. See slide 8 for FY 2022 comparison. For a description of non-GAAP measures, see Appendix.

2 Other represents revenue from certain non-strategic businesses that are considered immaterial operating segment(s) and commercial agreements with NCR Atleos.

3 Represents the quarterly and full year 2023 impact of the non-core payments and Austria-based hardware divestitures completed in 4Q23.

4 Represents delayed country exits which are expected to be included in discounted operations in the future, upon transfer completion.

N Y S E : V Y X 6

FY 2023 Adjusted EBITDA

$ in millions

Q1

Y-o-Y

Q2

Y-o-Y

Q3

Y-o-Y

Q4

Y-o-Y

FY

Y-o-Y

Growth (%)

Growth (%)

Growth (%)

Growth (%)

Growth (%)

Retail (Normalized)1

$83

38%

$115

16%

$123

8%

$90

-13%

$411

9%

Margin %

15.7%

20.8%

22.3%

16.5%

18.9%

Restaurants (Normalized)1

$44

22%

$51

38%

$52

21%

$50

25%

$197

26%

Margin %

21.2%

23.2%

22.9%

22.6%

22.5%

Digital Banking

$49

-14%

$54

-7%

$60

-3%

$56

0%

$219

-6%

Margin %

35.8%

38.3%

40.0%

37.1%

37.8%

Other (Normalized)1

Corporate and Other2

(66)

20%

(60)

11%

(73)

-13%

(67)

31%

(266)

9%

Est. costs historically allocated to Atleos3

$15

$23

$31

$2

$71

Normalized Adjusted EBITDA1

$125

2%

$183

12%

$193

21%

$131

-24%

$632

2%

Reconciliation back to reported

Divestitures4

$7

$6

$5

$1

$19

NCR Atleos delayed country transfers5

$10

$13

$11

$4

$38

Est. costs historically allocated to Atleos3

(15)

(23)

(31)

(2)

(71)

Adjusted EBITDA (as reported)

$127

9%

$179

11%

$178

17%

$134

-19%

$618

4%

1 Retail growth rates are normalized for the impact of a non-core payroll divestiture in 2022. Restaurants 2023 $ values and growth rates are normalized for the impact of the Austria-based hardware divestiture in 4Q23. See slide 9 for FY 2022 comparison. For a description of non-GAAP measures, see Appendix.

2 Represents income and expenses related to corporate functions that are not specifically attributable to any of our three individual reportable segments along with certain non-strategic businesses that are considered immaterial operating segment(s) and commercial agreements with NCR Atleos.

3 Represents general corporate overhead costs which do not meet the requirements to be presented in discontinued operations (such costs are not reflective of the on-going operations of the Company).

4 Represents the quarterly and full year 2023 impact of the non-core payments and Austria-based hardware divestitures completed in 4Q23.

5 Represents delayed country exits which are expected to be included in discounted operations in the future, upon transfer completion.

N Y S E : V Y X 7

FY 2022 Revenue

$ in millions

Q1

Q2

Q3

Q4

FY

Retail (Normalized)1

$519

$541

$553

$556

$2,169

SW & Services Revenue

$320

$328

$336

$347

$1,331

Hardware Revenue

$199

$213

$217

$209

$838

Restaurants (Normalized)1

$194

$217

$214

$215

$840

SW & Services Revenue

$136

$142

$143

$147

$568

Hardware Revenue

$58

$75

$71

$68

$272

Digital Banking

$137

$131

$139

$140

$547

Other (Normalized)1,2

$26

$18

$17

$16

$77

SW & Services Revenue

$22

$18

$14

$15

$69

Hardware Revenue

$4

$0

$3

$1

$8

Normalized Revenue1

$876

$907

$923

$927

$3,633

SW & Services Revenue

$615

$619

$632

$649

$2,515

Hardware Revenue

$261

$288

$291

$278

$1,118

Reconciliation back to reported

Divestitures3

$21

$21

$18

$15

$75

NCR Atleos delayed country transfers4

$20

$22

$19

$24

$85

Total Revenue (as reported)

$917

$950

$960

$966

$3,793

1 Retail & Restaurants $ values are normalized for the impact of a non-core payroll divestiture in 2022. Restaurants $ amounts are also normalized for the impact of the Austria-based hardware divestiture in 4Q23. For a description of non-GAAP measures, see Appendix.

  1. Represents revenue from certain non-strategic businesses that are considered immaterial operating segments.
  2. Represents quarterly and full year 2022 impact of non-core payments and HR payroll business, Austria based hardware divestiture.
  3. Represents delayed country exits which are expected to be included in discounted operations in the future, upon transfer completion.

N Y S E : V Y X 8

FY 2022 Adjusted EBITDA

$ in millions

Q1

Q2

Q3

Q4

FY

Retail (Normalized)1

$60

$99

$114

$104

$377

Margin %

11.6%

18.3%

20.6%

18.7%

17.4%

Restaurants (Normalized)1

$36

$37

$43

$40

$156

Margin %

18.6%

17.1%

20.1%

18.6%

18.6%

Digital Banking

$57

$58

$62

$56

$233

Margin %

41.6%

44.3%

44.6%

40.0%

42.6%

Other (Normalized)1

Corporate and Other2

(55)

(54)

(84)

(51)

(244)

Est. costs historically allocated to Atleos3

$24

$24

$24

$24

$96

Normalized Adjusted EBITDA1

$122

$164

$159

$173

$618

Reconciliation back to reported

Divestitures4

$10

$11

$8

$7

$36

NCR Atleos delayed country transfers5

$9

$10

$9

$10

$38

Est. costs historically allocated to Atleos3

(24)

(24)

(24)

(24)

(96)

Adjusted EBITDA (as reported)

$117

$161

$152

$166

$596

1 Retail & Restaurant $ values are normalized for the impact of a non-core payroll divestiture in 2022. Restaurants 2022 $ values rates are normalized for the impact of the Austria-based hardware divestiture in 4Q23. For a description of non-GAAP measures, see Appendix.

2 Represents income and expenses related to corporate functions that are not specifically attributable to any of our three individual reportable segments along with certain non-strategic businesses that are considered immaterial operating segments.

3 Represents general corporate overhead costs which do not meet the requirements to be presented in discontinued operations (such costs are not reflective of the on-going operations of the Company).

4 Represents quarterly and full year 2022 impact of non-core payments and HR payroll business, Austria-based hardware divestiture.

5 Represents delayed country exits which are expected to be included in discounted operations in the future, upon transfer completion.

N Y S E : V Y X 9

ARR Summary

$ in millions

Total ARR1

Software ARR2

YE 2023

YE 2022

YE 2023

YE 2022

Retail

$1,020

$1,007

$412

$384

Growth Rate

1%

7%

Restaurants

$540

$480

$323

$292

Growth Rate

13%

11%

Digital Banking

$534

$494

$534

$493

Growth Rate

8%

8%

Total Segment ARR3

$2,094

$1,981

$1,269

$1,169

Growth Rate

5%

9%

1 The term "annual recurring revenue" or "ARR" is recurring revenue, excluding software licenses sold as a subscription, for the last three months annualized, plus the rolling four quarters for term-based software license arrangements (including software license subscription) that include customer termination rights. For a description of non-GAAP measures and other key performance indicators, see Appendix.

2 Software ARR includes recurring software license revenue, software maintenance revenue, SaaS revenue, standalone hosted contract revenue, professional services recurring revenue and payments revenue.

3 Segment ARR is ARR related to NCR Voyix's three main reporting segments (Retail, Restaurants and Digital Banking).

N Y S E : V Y X 10

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NCR Voyix Corporation published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 11:57:03 UTC.