Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — NCR — Investor Day (September 2023)
77 slides from Ncr Voyix's investor day presentation, Sep 5, 2023
Slide 1: Investor Day 2023
Investor Day 2023 September 5, 2023
Slide 2: Welcome and Opening Remarks
Investor Day 2023 | 2 Welcome and Opening Remarks Sarah Jane Schneider | Executive Director, Investor Relations
Slide 3: Notes to Investors: Forward-Looking Statements
Investor Day 2023 | 3 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 o
Slide 4: Notes to Investors: Segments Information
Investor Day 2023 | 4 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 --
Slide 5: Notes to Investors: Use of Certain Terms
Investor Day 2023 | 5 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 inclu
Slide 6: Today's Agenda
Investor Day 2023 | 6 Today’s Agenda 9:00 am Opening Remarks Sarah Jane Schneider Executive Director, Investor Relations Welcome Message Mike Hayford CEO, NCR Strategy Overview David Wilkinson CEO, Voyix Retail Overview Eric Schoch EVP & President, Retail Restaurants Overview Lindsay Petrovic VP, Re
Slide 7: Welcome Message
Investor Day 2023 | 7 Welcome Message Mike Hayford | CEO, NCR
Slide 8: Strategy Overview
Investor Day 2023 | 8 Strategy Overview David Wilkinson | CEO, Voyix
Slide 9: Key Messages
Investor Day 2023 | 9 Key Messages Shifting the economics of our business by converting customers to our platform and expanding services we provide Capturing significant market opportunity driven by market growth, secular trends, and ability to add new customers Streamlining organization with enhanc
Slide 10: NCR Voyix At-a-Glance
Investor Day 2023 | 10 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
Slide 11: Who We Serve
Investor Day 2023 | 11 Who We Serve Broad Customer Base Highlights the Breadth of Our Platform Retail Restaurants Digital Banking
Slide 12: Strong Value Proposition Across Customer Segments
Investor Day 2023 | 12 Strong Value Proposition Across Customer Segments 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 Cloud-based Run
Slide 13: Driven Leadership Team Focused on Execution
Investor Day 2023 | 13 Driven Leadership Team Focused on Execution Skilled Management Team with 200+ years Combined Industry Experience David Wilkinson CEO, Voyix Joined 2010 Eric Schoch EVP & President, Retail 2016 Lindsay Petrovic VP, Restaurant Product Management 2021 Frank Hauck EVP & President,
Slide 14: Transforming to Capture Market Opportunities
Investor Day 2023 | 14 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-
Slide 15: Our Proven Growth Strategy
Investor Day 2023 | 15 Our Proven Growth Strategy Exceed Customer Expectations Deliver innovative, end-to-end solutions and outstanding customer service to deepen customer loyalty so we can grow together Reinvest in Innovation Reinvest in customer-centric innovation to expand purpose- built platform
Slide 16: Right to Win in Retail, Restaurant, and Digital Banking
Investor Day 2023 | 16 Right to Win in Retail, Restaurant, and Digital Banking Positioned to Grow from a Strong, Highly Competitive Foundation Trusted Partner Global provider of mission-critical technology to the retail, restaurant, and banking industries, with deep domain expertise Existing Install
Slide 17: Large and Growing Total Addressable Market
Investor Day 2023 | 17 Large and Growing Total Addressable Market Industry-leading Position in Attractive Growing Markets $25BLegacy TAM Add-On Services $42B Payments + CSP (Channel Services Platform) $53B Market Expansion $117B Key Trends Driving End Markets Digital transformation in stores and ban
Slide 18: Our Growth Algorithm
Investor Day 2023 | 18 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
Slide 19: Introducing New 2027 Financial Targets
Investor Day 2023 | 19 Introducing New 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 CAGRs calculat
Slide 20: Key Takeaways
Investor Day 2023 | 20 Key Takeaways 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 prov
Slide 21: Retail and Restaurants Overview
Investor Day 2023 | 21 Retail and Restaurants Overview Eric Schoch | EVP & President, Retail Lindsay Petrovic | VP, Restaurant Product Management
Slide 22: Key Messages
Investor Day 2023 | 22 Key Messages Leveraging deep industry expertise and customer relationships with iconic brands to blend digital and physical experiences for guests and store associates Deliver consistent annual revenue growth via SaaS and recurring Services revenue streams Transforming Restaur
Slide 23: Retail and Restaurants Businesses Overview
Investor Day 2023 | 23 Retail and Restaurants Businesses Overview1 Industry Leader in Point of Sale and Run-the-Store Technology Solutions • #2 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 • #1 Retail POS s
Slide 24: Post Pandemic Realities Require Comprehensive Set of Capabilities
Investor Day 2023 | 24 Post Pandemic Realities Require Comprehensive Set of Capabilities Deep Industry Expertise Enables Voyix to be a Trusted Advisor of Digital Transformation Holistic Solutions Supported by 24/7/365 Customer Service Store Operations Manage full store operations, applications and d
Slide 25: Platform Led SaaS and Services Model
Investor Day 2023 | 25 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 P
Slide 26: Differentiated Blend of Software and Services to Run the Store
Investor Day 2023 | 26 Differentiated Blend of Software and Services to Run the Store Providing Essential Services on a Modern, Streamlined Technology Foundation Platform Edge Computing • Eliminating in-store tech complexity • Automating processes • Update and manage stores at scale Cloud-Native Ser
Slide 27: Key Investment Highlights | Retail and Restaurants
Investor Day 2023 | 27 Key Investment Highlights | Retail and Restaurants Market leader in both POS and Self-checkout with a massive and growing market opportunity Competitive, end-to-end SaaS platform to run the store Large and diversified blue-chip customer base Opportunity to expand through multi
Slide 28: Retail
Investor Day 2023 | 28 Retail Eric Schoch | EVP & President, Retail
Slide 29: Why We Win | Retail
Investor Day 2023 | 29 Why We Win | Retail “In retail, we do not suffer fools. NCR has massive experience. They know retail really, really well.” – Director of Technology, Woolworth’s “We’ve integrated 14 unique capabilities into the NCR platform — some were completed in just weeks. NCR has stepped
Slide 30: Sainsbury's Customer Cameo
Investor Day 2023 | 30 PLACEHOLDER: Sainsbury’s Customer Cameo
Slide 31: Clear Strategy to Capitalize on Market Opportunity
Investor Day 2023 | 31 Clear Strategy to Capitalize on Market Opportunity Growth Strategy Maintain leadership position by connecting stores to platform; win the upgrade imperative Fortify and continue leadership position in self-checkout Enhance SaaS and Services offerings to drive growth in recurri
Slide 32: Case Study | Upgrading Store POS to Platform Infrastructure
Investor Day 2023 | 32 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 Lo
Slide 33: Retail KPI Metrics and Targets
Investor Day 2023 | 33 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 Comme
Slide 34: Restaurants
Investor Day 2023 | 34 Restaurants Lindsay Petrovic | VP, Restaurant Product Management
Slide 35: Why We Win | Restaurants
Investor Day 2023 | 35 Why We Win | Restaurants "NCR transformed a complex web of supplier systems into one simple one." – Director of Technology Operations, Starbucks EMEA “The platform is highly impactful for our restaurants. We now have streaming real-time transaction data that goes down to the p
Slide 36: Firebirds Customer Cameo
Investor Day 2023 | 36 PLACEHOLDER: Firebirds Customer Cameo
Slide 37: Our Growth Strategy | Restaurants
Investor Day 2023 | 37 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 soft
Slide 38: Clear Strategy to Capitalize on Market Opportunity
Investor Day 2023 | 38 Clear Strategy to Capitalize on Market Opportunity 1 Sources: IHL (2023 WW IT Spend Model from IHL Group), DataEssentials. Legacy TAM includes North America Store Systems & Infrastructure spend from IHL (i.e., HW, SW, Services for in-store applications). Add-On Services includ
Slide 39: Case Study | Upgrading Enterprise to Run-the-Restaurant
Investor Day 2023 | 39 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 Wit
Slide 40: Case Study | Upgrading SMB to Run-the-Restaurant
Investor Day 2023 | 40 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 Co
Slide 41: Restaurant KPI Metrics and Targets
Investor Day 2023 | 41 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 • Targe
Slide 42: Key Takeaways
Investor Day 2023 | 42 Key Takeaways Transforming Restaurant and Retail store systems with comprehensive, platform led SaaS and Service capabilities Leveraging deep industry expertise and customer relationships with iconic brands to blend digital and physical experiences for guests and store associa
Slide 43: Digital Banking Overview
Investor Day 2023 | 43 Digital Banking Overview Frank Hauck | EVP & President, Digital Banking
Slide 44: Key Messages
Investor Day 2023 | 44 Key Messages Delivering integrated digital banking solutions to drive increased penetration of active and new users Offering a unique retail banking experience for our customers while enhancing our go-to-market approach Accelerating profitable growth and capitalizing on market
Slide 45: Our Mission
Investor Day 2023 | 45 Our Mission Customers expect banking interactions to be straightforward and seamless — in every channel Voyix provides the leading platform for digital banking
Slide 46: Industry-Leading Digital-first Platform
Investor Day 2023 | 46 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 ot
Slide 47: Key Investment Highlights | Digital Banking
Investor Day 2023 | 47 Leading digital banking platform with large and diversified customer base Leveraging category-defining digital first solution suite to capture large opportunity across tiered end markets Innovative and deeply experienced management team Industry leading financial profile with
Slide 48: Differentiated and Seamless Customer Experience
Investor Day 2023 | 48 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 I
Slide 49: Digital Banking Market Opportunity
Investor Day 2023 | 49 Digital Banking Market Opportunity Continuing to Expand our TAM by Introducing New Services $15B SAM $30B+ Whitespace Opportunity $11.5B+ US TAM $6B+ U.S. TAM $7.5B+ US TAM Focused domestically today and well positioned for highly fragmented and in-house dominated internationa
Slide 50: Capitalizing on Multiple Levers for Growth
Investor Day 2023 | 50 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 G
Slide 51: Case Study | Digital-First Approach
Investor Day 2023 | 51 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
Slide 52: Wintrust Customer Cameo
Investor Day 2023 | 52 PLACEHOLDER: Wintrust Customer Cameo
Slide 53: Digital Banking KPI Metrics and Targets
Investor Day 2023 | 53 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 a
Slide 54: Key Takeaways
Investor Day 2023 | 54 Key Takeaways Accelerating profitable growth and capitalizing on market-leading position with new and existing medium and large-sized financial institutions Delivering integrated digital banking solutions to drive increased penetration of active and new users Offering a unique
Slide 55: Financial Outlook
Investor Day 2023 | 55 Financial Outlook Brian Webb-Walsh | CFO, Voyix
Slide 56: Key Messages
Investor Day 2023 | 56 Key Messages Driving margin expansion through improved mix, product optimization, and disciplined expense management Organically strengthening our financial resilience through free cash flow generation and prudent balance sheet management Optimizing capital allocation to accel
Slide 57: Building from a Strong Foundation
Investor Day 2023 | 57 Building from a Strong Foundation Leveraging Industry-leading Customer Base for Recurring Revenue and ARPU Growth $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 2020 2023E 16% 17% • Strong secular digitization trend • Strong client retention • Initial customer conversi
Slide 58: Strategy to Drive Profitable Revenue Growth
Investor Day 2023 | 58 Strategy to Drive Profitable Revenue Growth Platform-based Businesses Leveraged to Growth Sectors Enhanced Enterprise Alignment • Innovate customer-centric software solutions • Increase NPS through full-service partnership and vast, cloud-based solutions portfolio Clear Strate
Slide 59: 2027 Financial Targets
Investor Day 2023 | 59 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
Slide 60: How We'll Track our Progress (KPIs)
Investor Day 2023 | 60 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 $5,000 40% 32M
Slide 61: Revenue Growth Targets
Investor Day 2023 | 61 2022 2023E Retail Rest DB 2027E Revenue Growth Targets ($B) Platform Deepening Drives Accelerating Growth ~$3.8 • SaaS-based model drives increasing recurring revenue and consistency • Rollout of additional services to platform customers generates significant ARPU expansion •
Slide 62: Adjusted EBITDA Growth Targets
Investor Day 2023 | 62 Adjusted EBITDA Growth Targets ($M) Clear Path to Achieve our 2027 Targets ~$630 • Higher earnings contribution from Digital Banking segment • Ongoing product mix shift from hardware to software/services • Impact of product lifecycle management optimization • Improved operatin
Slide 63: Strong, Flexible Balance Sheet and Manageable Debt Profile
Investor Day 2023 | 63 Strong, Flexible Balance Sheet and Manageable Debt Profile for Future Growth Initial Expected Capital Structure ($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 St
Slide 64: Clear and Disciplined Capital Allocation Priorities
Investor Day 2023 | 64 Clear and Disciplined Capital Allocation Priorities Clear Priorities Aligned with Growth Initiatives to Enhance Shareholder Returns Future Priorities Invest in Organic Initiatives • Continue ongoing capex of 6 - 7% of revenue to maintain market leadership position • Accelerate
Slide 65: Key Takeaways
Investor Day 2023 | 65 Key Takeaways Executing a clear strategy focused on customer-centric software and services to accelerate recurring revenue growth Driving margin expansion through improved mix, product optimization, and disciplined expense management Organically strengthening our financial res
Slide 66: Closing Remarks
Investor Day 2023 | 66 Closing Remarks David Wilkinson | CEO, Voyix
Slide 67: Compelling Investment Thesis
Investor Day 2023 | 67 Compelling Investment Thesis Shifting the economics of our business by converting customers to our platform and expanding services we provide Capturing significant market opportunity driven by market growth, secular trends, and ability to add new customers Streamlining organiz
Slide 68: Investor Day 2023 Q&A
Investor Day 2023 | 68 Investor Day 2023 Q&A
Slide 69: Supplementary Information
Investor Day 2023 | 69 Investor Day 2023 Supplementary Information
Slide 70: Non-GAAP Measures
Investor Day 2023 | 70 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 provi
Slide 71: Non-GAAP Measures (continued)
Investor Day 2023 | 71 Non-GAAP Measures (continued): Adjusted Free Cash Flow – Unrestricted NCR Voyix defines Adjusted Free Cash Flow – Unrestricted as net cash provided by (used in) operating activities less capital expenditures for property, plant and equipment, less additions to capitalized soft
Slide 72: Speaker Bios
Investor Day 2023 | 72 Investor Day 2023 Speaker Bios
Slide 73: David Wilkinson
Investor Day 2023 | 73 David Wilkinson David Wilkinson is the current president of NCR Commerce and the CEO-designee for Voyix. David is responsible for creating and executing NCR’s overall vision and strategy for the retail and restaurant industries. He is focused on helping retailers and restauran
Slide 74: Eric Schoch
Investor Day 2023 | 74 Eric Schoch Eric Schoch is senior vice president and general manager, NCR Retail, and executive vice president and president, Retail-designate for Voyix. Eric is a seasoned executive with extensive experience leading high-growth technology businesses on a global stage, develop
Slide 75: Lindsay Petrovic
Investor Day 2023 | 75 Lindsay Petrovic Lindsay is currently Vice President, Restaurant Product Management at NCR. She is the head of product management for NCR’s restaurant technology business, and manages all software, hardware, and services offerings for NCR’s restaurant customers. Lindsay and he
Slide 76: Frank Hauck
Investor Day 2023 | 76 Frank Hauck Frank Hauck is president and general manager, NCR Banking, and executive vice president and president, Digital Banking-designate for Voyix. In his current role, Frank is responsible for developing and driving the successful execution of the vision and strategy for
Slide 77: Brian Webb-Walsh
Investor Day 2023 | 77 Brian Webb-Walsh Brian Webb-Walsh is NCR’s executive vice president finance and CFO-designate for Voyix. Effective with the separation, Brian will have global responsibility for finance, accounting, treasury, investor relations, tax, M&A, audit, and real estate. He will work w