Ncr Voyix Corporation · NYSE:VYX
Ncr Voyix — NCR — Merger or Acquisition (January 2021)
16 slides from Ncr Voyix's merger presentation, Jan 11, 2021
Slide 1: Investor Presentation: Response to 1/8/21 Acquisition Leak
MICHAEL HAYFORD, PRESIDENT & CEO OWEN SULLIVAN, COO TIM OLIVER, CFO January 11, 2021 INVESTOR PRESENTATION Response to 1/8/21 Acquisition Leak Exhibit 99.2
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS. Comments made during this conference call 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 harb
Slide 3: Background and Context
Status Rationale After CATM had signed an agreement with another buyer, NCR submitted a higher offer of $39 in cash per share Due diligence process is underway NCR’s involvement was the subject of market and media rumors last Friday Expands and accelerates NCR strategy Consistent with our NCR shareh
Slide 4: Investment Thesis
Investment Thesis NCR shareholder value creation will be driven by: Mix shift to software and services Recurring revenue growth Margin expansion From December 3, 2020 NCR Investor Day
Slide 5: Strategic Rationale: Strategically Consistent…Accretive
Accretive Accelerates NCR-as-a-Service strategy Advances NCR’s 80/60/20 targets: 80% software & services mix, 60% recurring revenue, 20% Adj. EBITDA margin Enhances NCR’s scale and cash flow generation Expands payments opportunity Strategic Rationale Strategically Consistent…Accretive
Slide 6: Accelerates NCRaaS Strategy & Expands Payments Opportunity
Accelerates NCRaaS Strategy & Expands Payments Opportunity NCR & Cardtronics combo creates: as-a-Service Company with Scale and installed base Proven model Complementary customers and regions Ability to Monetize Payment Transactions Combining network with NCR addressable market Accelerates: All thre
Slide 7: Accelerates NCR-as-a-Service Strategy and…
*Source: RBR 2018 Accelerates NCR-as-a-Service Strategy and… Accelerating digitization of banking requires a reconfigured cash infrastructure Capitalizing on banks’ transition towards ATM operations outsourcing and branch rationalization Offering a Full Suite of Self-directed Banking Solutions ATM-a
Slide 8: Cardtronics' debit network will allow NCR to connect retail and bank customers
Cardtronics’ debit network will allow NCR to connect retail and bank customers Value of the Network Retailers FI / Fintech Surcharge-Free Network Bank Branding + Consumer Loyalty / Volume Drives customer growth & loyalty Consumer Convenience Drives more store traffic and lower branch traffic More FI
Slide 9: Accelerates 80/60/20 Strategy; Opportunity for Significant Shareholder Value Creation
Software & Services70%~74% % of Total Revenue Recurring Revenue55%>60% % of Total Revenue Adj. EBITDA Margin16%>16% % of Total Revenue NCR NCR Standalone Proforma Cash Flow Generation Cost and Revenue Synergies Adjusted EPS Accretion Accelerates 80/60/20 Strategy Opportunity for Significant Sharehol
Slide 10: NCR 2020-2024 Financial Objectives
NCR 2020-2024 Financial Objectives ~ $6.2B ~ $7.4B REVENUE $600-700M FREE CASH FLOW ~ 14% ~ 20% 2018 2019 2020 2024 Software & Services Revenue 68% 65% 72% ~80% Recurring Revenue 46% 46% 54% >60% Adj. EBITDA Margin 15% 15% 14% ~20% STRATEGIC EXECUTION ADJ. EBITDA MARGIN % ~ $2B to Redeploy ~ 5% CAGR
Slide 11: NCR 2020-2024 Financial Objectives
NCR 2020-2024 Financial Objectives REVENUE FREE CASH FLOW 2018 2019 2020 2024 Software & Services Revenue 68% 65% 72% ~80% Recurring Revenue 46% 46% 54% >60% Adj. EBITDA Margin 15% 15% 14% ~20% STRATEGIC EXECUTION ADJ. EBITDA MARGIN % Accelerates achievement by ~2 years Expand to >20% >5% organic gr
Slide 12: Next Steps
Next Steps We plan to complete our diligence efforts shortly The timing is not in our control, the process continues to progress We may not be successful in acquiring Cardtronics and will continue to execute against our strategy and our 2021 plan We do not intend to provide further public communicat
Slide 13: Supplemental Materials
Supplemental Materials
Slide 14: Non-GAAP Measures
NON-GAAP MEASURES While NCR 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 additional useful informati
Slide 15: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
GAAP TO NON-GAAP RECONCILIATION ADJUSTED EBITDA FY 2018 FY 2019 Net Income from Continuing Operations Attributable to NCR (GAAP) $(36) $614 Pension Mark-to-Market Adjustments (45) 75 Transformation & Restructuring Costs 223 58 Acquisition-Related Amortization of Intangibles 85 86 Acquisition-Related
Slide 16: GAAP to Non-GAAP Reconciliation: Free Cash Flow
GAAP TO NON-GAAP RECONCILIATION FREE CASH FLOW 2024E Cash provided by Operating Activities $800-900M Total capital expenditures (~$300M) Pension contributions ~$100M Free Cash Flow $600-700M