Slide 1: Q4 2012 Earnings Conference Call
NCR Confidential Q4 2012 EARNINGS CONFERENCE CALL BILL NUTI, CHAIRMAN AND CEO February 7, 2013
Slide 2: Notes to Investors
NCR Confidential NOTES TO INVESTORS 2 Comments made during this conference call and in these materials may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements use words such as “seek,” “potential,” “expect,” “striv
Slide 3: Q4 2012 Key Takeaways
NCR Confidential Q4 2012 KEY TAKEAWAYS 3 Order Growth of 15%, Backlog up 11% at year end Revenue - $1.64B, growth of 3% as reported and on a constant currency basis Software revenue growth of 12% year-over-year Exceeded annual software revenue target (4) NPOI - $181M, growth of 5% year-over-year Ach
Slide 4: Full-Year 2012 Financial Results
NCR Confidential FULL-YEAR 2012 FINANCIAL RESULTS 4 Revenue - $5.73B, growth of 8%; up 11% on a constant currency basis (1) Operational gross margin of 26.8%, 190 basis point expansion Record operational gross margin (2) (1) NPOI - $589M, growth of 22% year-over-year Achieved all-time full year NPOI
Slide 5: 2012 Operating Highlights
NCR Confidential Executed a balanced approach to strategic growth, while tackling legacy issues to ensure long-term benefits 2012 OPERATING HIGHLIGHTS 5 Implemented Phase II of pension management strategy; significantly reduced underfunded status - improved ~$880M from beginning of year; reduced ove
Slide 6: Industry Highlights
NCR Confidential Industry Highlights Key Developments Financial Revenue increase of 6% for 2012, 9% FX neutral Continued to invest in services and R&D Continued share gains in U.S. – acquired 47 new customers in Q4, bringing total to 475 since beginning of 2011 Acquired Transoft & uGenius Te
Slide 7: Retalix Acquisition Completed
NCR Confidential Financial Services Retail Hospitality Emerging Industries Business Highlights #1 in ATMs #1 in automated deposit in the U.S. #1 in ATM multi-vendor software #1 in self-checkout 22 of the top 30 global retailers NCR Silver now available at Staples #1 hospitality provider in th
Slide 8: Pension Update
NCR Confidential PENSION UPDATE 8 Pension Phases Status Reallocation of US plan assets to approx. 100% fixed income by end of 2012 Work with trustee boards of international plans to shift asset allocation to fixed income Evaluate funding and further de-risking alternatives for the remaining U.
Slide 9: The Year Ahead
NCR Confidential THE YEAR AHEAD 9 Strategic execution, breakaway innovation, customer-centric focus and improving our balance sheet will remain our top priorities Retalix transaction complete; Integration has begun Further execution of pension strategy; Expect Phase III to be announced by midyear Ex
Slide 10: Supplementary Non-GAAP Materials
NCR Confidential SUPPLEMENTARY NON- GAAP MATERIALS
Slide 11: Non-GAAP Measures
NCR Confidential NON-GAAP MEASURES 11 While NCR reports its results in accordance with generally accepted accounting principles (GAAP) in the United States, comments made during this conference call and the related presentation materials will include non-GAAP measures in an effort to provide additio
Slide 12: Non-GAAP Measures: NPOI, Non-GAAP EPS and Operational Gross Margin
NCR Confidential NON-GAAP MEASURES 12 NPOI, Non-GAAP EPS and Operational Gross Margin. The non-GAAP income from operations (i.e., non-pension operating income, or NPOI), non-GAAP earnings per share and operational gross margin included in these materials exclude the impact of pension expense and cer
Slide 13: Non-GAAP Reconciliations
NCR Confidential NON-GAAP RECONCILIATIONS 13 Q4 2012 Full-Year 2012 Q4 2012 Full-Year 2012 Gross Margin as a % of Revenue (GAAP) 20.2% 23.5% Loss (income) from Continuing Operations (GAAP) $(7) $232 Pension Expense 5.9% 3.0% Pension Expense 164 292 Acquisition-Related Amortization of Intangibles 0.3
Slide 14: Non-GAAP Reconciliations: Diluted EPS
NCR Confidential NON-GAAP RECONCILIATIONS 14 Full-Year 2012 Diluted Earnings Per Share from Continuing Operations (GAAP) $0.85 Pension Expense 1.33 Acquisition-Related Amortization of Intangibles 0.15 Acquisition-Related Costs 0.10 OFAC and FCPA Investigations 0.01 Impairment Charge 0.05 Diluted Ear
Slide 15: Non-GAAP Reconciliations: Free Cash Flow
NCR Confidential NON-GAAP RECONCILIATIONS 15 Cash (used in) provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) 2012 2011 2012 2011 Cash (used in) provided by operating activities (GAAP) $100 $274 $(180) $388 Net capital expenditures (49) (35) (160) (123) Net cash used in discontinu
Slide 16: Non-GAAP Reconciliations: Constant Currency Revenue Growth
NCR Confidential 16 NON-GAAP RECONCILIATIONS Revenue Growth % (GAAP) to Constant Currency Revenue Growth % (non-GAAP) Full-Year 2012 Revenue growth % (GAAP) 8% Unfavorable foreign currency fluctuation impact 3% Constant currency revenue growth % (non-GAAP) 11%