Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — NCR — Corporate Update (March 2020)
11 slides from Ncr Voyix's corporate update, Mar 31, 2020
Slide 1: NCR COVID-19 Business Update March 31, 2020
NCR COVID-19 Business Update March 31, 2020
Slide 2: Notes to Investors: Forward-Looking Statements
Notes to Investors FORWARD-LOOKING STATEMENTS. Comments made during this conference call and in these materials contain statements that are “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,
Slide 3: NCR Operating Climate
NCR Operating Climate ▪ NCR Global Fulfillment Center ‾ Tornado on March 3rd ‾ Business Continuity Plan activated; shipments back to normal capacity ▪ Coronavirus ‾ NCR Coronavirus Task Force operating since January ‾ NCR Executive Leadership Team meets daily to review status/actions ‾ Manufacturing
Slide 4: Banking: $3.5B 2019 Revenue (51% of NCR)
Banking $3.5B 2019 Revenue (51% of NCR) Markets We Serve Expected Impact ▪ ATM Hardware: Self Service ▪ Near term impacts with logistics; but ATM (Self-Service) has become very 36% Hardware automating extending business hours for teller transactions critical for banks again 37% ▪ ATM Break Fix Servi
Slide 5: Retail: $2.2B 2019 Revenue (32% of NCR)
Retail $2.2B 2019 Revenue (32% of NCR) Markets We Serve Expected Impact 70% ▪ Food/Drug/Mass Merchandise: ▪ Near term impact with logistics; Self- Includes grocery stores, drug stores & checkout & point-of-sale support big box retailers critical function during this time ▪ Department/Specialty Retai
Slide 6: Hospitality: $0.8B 2019 Revenue (12% of NCR)
Hospitality $0.8B 2019 Revenue (12% of NCR) Markets We Serve Expected Impact ▪ Quick Service Restaurant: Includes ▪ Minimal impact on customer demand 58% fast food restaurants with self-service & quick pick options ▪ Small / Medium Business: Includes ▪ Significant impacts in near term given the work
Slide 7: Manufacturing Network
Manufacturing Network Chennai, IN Budapest, HU Manaus, BR Guadalajara, MX Chihuahua, MX Nashville, TN -Contract -Distribution Center -Brazil Domestic -Complete Range of Manufacturing North America Production DC ATMs, Media Handling Hospitality POS & --Contract fulfillment -All LOBs primarily -Produc
Slide 8: Actions: Cash Focus
Actions: Cash Focus Operating Goals • Manage quarter to quarter at cash flow neutral • Address potential business impacts with spending cuts Reductions • Cash Savings: • Suspend stock buybacks • Limit M&A • Salary reductions • Capital projects • Contractors • Travel • Merit freeze • Hiring freeze 8
Slide 9: NCR Debt Maturities & Liquidity Status
NCR Debt Maturities & Liquidity Status Estimated As of March 31, 2020 ($ millions) Pension Contributions AR Securitization 5.000% Notes 6.375% Notes Revolver Preferred Shares $115 TLB 5.750% Notes 6.125% Notes $1,100 $99 $68 $94 $72 $65 $34 $700 $750 $600 $500 $500 $395 $26 $300 $85 $70 2020 2021 20
Slide 10: Key Takeaways
Key Takeaways ▪ Building a cash reserve to maximize financial flexibility ‾ Strong liquidity ‾ Ample room on the Company’s debt covenants • NCR’s Senior Secured Credit Facility covenant is 4.75x Net Debt/trailing twelve- month adjusted EBITDA. Covenant defined net leverage is expected to be in the m
Slide 11: Q&A
Q&A