Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — NCR — Investor Presentation (September 2023)
37 slides from Ncr Voyix's investor presentation, Sep 18, 2023
Slide 1: Investor Presentation September 2023
NCR Voyix | 1 Investor Presentation NYSE: VYX September 2023
Slide 2: Notes to Investors: Forward-Looking Statements
NCR Voyix | 2 Notes to Investors FORWARD-LOOKING STATEMENTS. NCR, to be renamed NCR Voyix (“NCR Voyix” or the “Company”), cautions that 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,
Slide 3: Notes to Investors: Segments Information
NCR Voyix | 3 Notes to Investors SEGMENTS INFORMATION. Following the completion of the planned separation of NCR’s ATM business, the Company plans to manage its business in a manner that is expected to result in the Company having three reportable segments as identified in these materials -- Retail,
Slide 4: Notes to Investors: Use of Certain Terms
NCR Voyix | 4 Notes to Investors 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 hard
Slide 5: NCR Voyix At-a-Glance
NCR Voyix | 5 NCR Voyix At-a-Glance1 (NYSE: VYX) Market-Leading Software and Services Business with Large, Profitable Recurring Revenue Streams 1 All values presented are CY 2023E. 2 Excludes other perimeter adjustments; hence, the contribution percentages do not add up 100%. 3 Source: RBR Global PO
Slide 6: Strong Value Proposition Across Customer Segments
NCR Voyix | 6 Strong Value Proposition Across Customer Segments Creates Win/Win Uniquely Positioned to Provide End-to-end Capabilities Best-in-Class POS Platform for Digital Commerce Navigating new consumer experience expectations, both in-person and online, while lowering operational costs Customer
Slide 7: Where We Were, Where We Are, Where We Are Going
NCR Voyix | 7 Where We Were (2018) Where We Are (2022 / 2023) Where We Are Going (2024+) Product Focus Hardware legacy Market-leading, software-driven offerings Integrated, platform-based solutions Go-to- Market Approach Product selling Solution selling Indispensable partner and a one-stop-shop Cust
Slide 8: Our Growth Algorithm
NCR Voyix | 8 Our Growth Algorithm Poised for a New Era of Revenue Growth and Margin Expansion $220B (IT Spend) Drive Revenue and ARPU Expansion • Deliver end-to-end platform services to drive growth with existing customers • Become one-stop-shop for all “run-the-store” technology $220B (IT Spend) G
Slide 9: Compelling Investment Thesis
NCR Voyix | 9 Leading global provider of digital commerce solutions for Retail, Restaurant, and Digital Banking industries with a large installed base and right to win Shifting the economics of our business by converting customers to our platform and expanding services we provide Capturing significa
Slide 10: Retail and Restaurants Overview
NCR Voyix | 10 Retail and Restaurants Overview
Slide 11: Retail and Restaurants Businesses Overview
NCR Voyix | 11 Retail and Restaurants Businesses Overview1 Industry Leader in Point of Sale and Run-the-Store Technology Solutions • #1 Restaurant POS software provider worldwide • 8 of the top 10 global restaurant chains ~70% ~30% Retail Restaurants R E S T A U R A N T S 2 • #2 Retail POS software
Slide 12: Platform Led SaaS and Services Model
NCR Voyix | 12 Store Operations Point of Sale Software Store Virtualization Fuel Controller Pharmacy Kitchen Consumer Engagement Loyalty & Promotions Self-checkout & Frictionless Consumer Marketing Mobile Ordering Back Office & Data Back Office Inventory Data Analytics Cash Office Payments Payment G
Slide 13: Retail Case Study: Upgrading Store POS to Platform Infrastructure
NCR Voyix | 13 Retail Case Study | Upgrading Store POS to Platform Infrastructure $10M Committed ARR 3.8x Additional ARPU Data Analytics Mobile Payments Kitchen Partner Marketplace Cash Office Legacy POS Technology POS / Customer Display Self-ordering Kiosk Store Virtualization Fuel POS Software Loy
Slide 14: Retail KPI Metrics Targets
NCR Voyix | 14 Retail KPI Metrics Targets ~10% ~37% FY23E FY27E Cumulative Platform Conversions (% of Total Install Base) ~1.5x Year 1 Year 5 Target ARPU Expansion Post-Conversion ~46% ~55% FY23E FY27E Recurring Revenue (% of Total Revenue) • Subscription-based sites connected to Voyix Commerce Plat
Slide 15: Our Growth Strategy: Restaurants
NCR Voyix | 15 Enterprise Total Revenue 76% Our Growth Strategy | Restaurants • Connect customers to Voyix’s Commerce Platform • Grow share of wallet by upselling on value-added SaaS and Payments • Accelerate “Run-the- Restaurant” services • Grow market share with Payments-led bundle of software and
Slide 16: Restaurant Case Study: Upgrading Enterprise to Run-the-Restaurant
NCR Voyix | 16 Restaurant Case Study | Upgrading Enterprise to Run-the Restaurant Legacy Offering Legacy POS Technology • POS • Mobile POS • Mobile Ordering • Mobile Payments • API Toolkits • Wall to Wall Service Desk • Data Analytics • Back Office* • Network & Security Services* • Kitchen Hardware
Slide 17: Restaurant Case Study: Upgrading SMB to Run-the-Restaurant
NCR Voyix | 17 Restaurant Case Study | Upgrading SMB to Run-the-Restaurant Legacy Offering Legacy POS Technology • POS • Mobile Ordering • Consumer Marketing • Data Analytics • Loyalty & Promotions (Gift Card) • Payment Processing • Payment Gateway • Mobile Payments • API Toolkits Within One Year of
Slide 18: Restaurant KPI Metrics Targets
NCR Voyix | 18 Restaurant KPI Metrics Targets ~20% ~40% FY23E FY27E Cumulative Platform Conversions (% of Total Install Base) ~1.5x ~3.0 … Year 1 Year 5 Number of Payment Sites • Converting installed base to subscription plus connecting to Voyix Commerce platform drives increased ARR • Targeted sale
Slide 19: Digital Banking
NCR Voyix | 19 Digital Banking
Slide 20: Industry-Leading Digital-first Platform
NCR Voyix | 20 Industry-Leading Digital-first Platform1 Linking Digital Interactions Across All Branch Channels via the Cloud ~$570M Revenue ~38% Adj. EBITDA Margin ~20M Active Users 800+ Total Clients 95%+ Client Retention 45%+ “Rule of 40” Metric2 1 All values presented are 2023E unless otherwise
Slide 21: Differentiated and Seamless Customer Experience
NCR Voyix | 21 Differentiated and Seamless Customer Experience Bridging Digital-to-Physical Interactions with Best-in-Class Service Support API-first Ecosystem Designed to Replace Aging Retail Banking Systems and Easily Add New Services Banking World Needs Modern, High-Performance Platform Innovatio
Slide 22: Capitalizing on Multiple Levers for Growth
NCR Voyix | 22 Capitalizing on Multiple Levers for Growth Comprehensive Strategy to Deliver Profitable Growth Win New Clients • Expand client base targeting net new clients and +95% annual retention • Grow ARR through new clients and cross-sell of existing and new product portfolio Organic Growth •
Slide 23: Case Study: Digital-First Approach
NCR Voyix | 23 Case Study | Digital-First Approach Problem Future Opportunities Unique Platform Solution Outcome $25M Total Contract Value• 15 branded community bank subsidiaries with 180+ banking locations • Need to maintain individualized look and feel while having a consistent technology experien
Slide 24: Digital Banking KPI Metrics Targets
NCR Voyix | 24 Digital Banking KPI Metrics Targets Registered Users Active Users ~$520 FY23E FY27E Annual Recurring Revenue ($M) • Continue to increase usage from existing customers by penetrating their user base • Convert registered but inactive users to Active Users • Continue to develop and intro
Slide 25: Financial Outlook
NCR Voyix | 25 Financial Outlook
Slide 26: 2027 Financial Targets
NCR Voyix | 26 2027 Financial Targets Customer-centric Business Model Fueling Future Operational and Financial Outperformance 4 – 6% Recurring Revenue ~65% 9 – 11% +400 – 500 bps Margin Expansion 10 – 12% 40 – 45% +10 – 15 ppts Change from 2023 - 2027 Note: All CAGR calculated using 2023 to 2027 com
Slide 27: How We'll Track our Progress (KPIs)
NCR Voyix | 27 How We’ll Track our Progress (KPIs) Retail Total Sites Rev per Site (ARPU) % Platform Restaurants Site Conversion Total Sites Rev per Site (ARPU) % Platform Digital Banking Active Users 2023E 213k $5,300 10% 153k $3,600 20% 20M 2027 Targets 225k $6,700 37% 159k $5,000 40% 32M Rev Per
Slide 28: Revenue Growth Targets
NCR Voyix | 28 2022 2023E Retail Rest DB 2027E Revenue Growth Targets ($B) Platform Deepening Drives Accelerating Growth ~$3.8 • SaaS-based model drives increasing recurring revenue and consistency • Rollout of additional services to platform customers generates significant ARPU expansion • Expect a
Slide 29: Adjusted EBITDA Growth Targets
NCR Voyix | 29 Adjusted EBITDA Growth Targets ($M) Clear Path to Achieve our 2027 Targets ~$634 • Higher earnings contribution from Digital Banking segment • Ongoing product mix shift from hardware to software/services • Impact of product lifecycle management optimization • Improved operating expens
Slide 30: Strong, Flexible Balance Sheet and Manageable Debt Profile
NCR Voyix | 30 Strong, Flexible Balance Sheet and Manageable Debt Profile for Future Growth Initial Expected Capital Structure ($M, Using expected debt and cash for YE23) Total Debt $2,500 Cash Balance $150 Revolver $0 Net Debt $2,350 Net Leverage Ratio1 ~3.5x Net Debt to Adj. EBITDA Term Structure
Slide 31: Clear and Disciplined Capital Allocation Priorities
NCR Voyix | 31 Clear and Disciplined Capital Allocation Priorities Allocate Capital to Highest Return Opportunities to Drive Shareholder Value Future Priorities Invest in Organic Initiatives • Continue ongoing capex of 6 - 7% of revenue to maintain market leadership position • Accelerate development
Slide 32: Appendix Supplementary Information
NCR Voyix | 32 Appendix Supplementary Information
Slide 33: Non-GAAP Measures
NCR Voyix | 33 Non-GAAP Measures: While NCR Voyix reports its results in accordance with generally accepted accounting principles (GAAP) in the United States, comments made during this conference call and in these materials will include non-GAAP measures. These measures are included to provide addit
Slide 34: Non-GAAP Measures (continued): Net Debt
NCR Voyix | 34 Non-GAAP Measures (continued): Net Debt NCR Voyix determines Net Debt based on its total debt less cash and cash equivalents, with total debt being defined as total short-term borrowings plus total long-term debt. Total debt is based on the targeted total debt subsequent to the spin-o
Slide 35: Non-GAAP Measures (continued): Reconciliations
NCR Voyix | 35 Non-GAAP Measures (continued): Non-GAAP Reconciliations: With respect to our Adjusted Gross Margin (excl D&A) and Adjusted EBITDA estimates, we are not providing a reconciliation of the respective GAAP measures because we are not able to predict with reasonable certainty the reconcili
Slide 36: Modeling Considerations
NCR Voyix | 36 Modeling Considerations FY 2024 Estimated Adjusted Free Cash Flow – Unrestricted3 Metrics ($M) One-Time Separation Cash Items $25 - $50M Cash Interest ~$150 CapEx ~$260 Growth / Maintenance ~60% / 40% Free Cash Flow $170 – $210 Conversion 25% – 30% 1 Based on estimated continuing oper
Slide 37: Historical KPI Metrics Performance and Targets
NCR Voyix | 37 Historical KPI Metrics Performance and Targets 207k 192k 142k 8k 21k 83k $5,239 $5,300 $6,700 2022A 2023E 2024E 2025E 2026E 2027E Retail Legacy Sites Platform Sites ARPU 125k 123k 96k 29k 31k 63k $3,297 $3,600 $5,000 2022A 2023E 2024E 2025E 2026E 2027E Restaurant Legacy Sites Platform