UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): December 4, 2008
NCR CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number 001-00395
| Maryland | 31-0387920 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
1700 S. Patterson Blvd.
Dayton, Ohio 45479
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (937) 445-5000
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 7.01 | Regulation FD Disclosure. |
On December 4, 2008, NCR Corporation (the “Company”) will make a presentation to the equity investment community to discuss the Company’s business strategy. A copy of the presentation is included as Exhibit 99.1 hereto.
On December 3, 2008, the Company issued a press release announcing this presentation. The press release is included as Exhibit 99.2 hereto.
The information contained in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly stated by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibit. |
(c) Exhibits
| Exhibit |
Description of Exhibits | |
| 99.1 | Presentation of the Company dated December 4, 2008 | |
| 99.2 | Press release of the Company dated December 3, 2008 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| NCR CORPORATION | ||||
| Date: December 4, 2008 | By: | /s/ Anthony Massetti | ||
| Anthony Massetti | ||||
| Senior Vice President and Chief Financial Officer | ||||
 NCR Analyst
Day December 4, 2008 New York Stock Exchange New York, New York Exhibit 99.1 |
 NCR Confidential |
 Thursday,
December 4, 2008 NCR Business Strategy Bill Nuti – Chairman & CEO Q & A Product Development Strategy Alan Chow – SVP, Product Development & CTO Operations Strategy Peter Dorsman – SVP, Operations Services Strategy Chris Wallace – SVP, Services NCR Business Model Tony Massetti – SVP, CFO |
 NCR Confidential Note to Investors Certain non-GAAP financial information regarding NCR’s operating results may be discussed during this presentation. Reconciliations of the differences between GAAP and non-GAAP measures are available on the Investor page of NCR’s website at www.ncr.com. Remarks and responses associated with this presentation include forward- looking statements that are based on current expectations. These forward- looking statements are subject to a number of risks and uncertainties that could cause actual results to vary materially. These risk factors are detailed from time to time in NCR’s SEC reports, including, but not limited to, Forms 10Q, 10K, 8K and the company’s annual report to shareholders. |
 NCR Confidential NCR
Business Strategy Bill Nuti Chairman & CEO |
 NCR Confidential Creating Shareholder Value – A Look Back at 2007 |
 NCR Confidential NCR Analyst Day 2007: Key
Take-Aways • NCR can grow the top line; we’re on a strong foundation • A growing addressable market • Expanding consumer demand for self-service channels • Experienced management team dedicated to improve execution |
  NCR Confidential ($ in Millions) ($ in Millions) Doing “What We Said We Would Do” …. and More |
 NCR Confidential Creating Shareholder Value – 2008 Update |
 NCR Confidential Over the Past Year NCR Continues to Execute
Dynamic environment…things outside of our control • Unprecedented dislocation in global economy • Our largest end-markets (Financial & Retail) have been significantly impacted • Poor financial market returns signal higher pension expense • Capex constrained NCR is focused…largely within our control • Executing well despite economic headwinds and end-market challenges • Consumer demand for self-service channels continues to accelerate • Strong balance sheet • Improving cash flows and working capital position • We continue to meet our cost reduction targets and NPOI margin expansion goals • Long term confidence in NCR business model |
 NCR Confidential Creating Shareholder Value
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 NCR Confidential Our Vision & Mission “Leading how the world “Leading how the world connects, interacts, connects, interacts, and transacts with and transacts with business” business” Our Vision Our Mission “Provide our customers with the “Provide our customers with the next generation of productivity next generation of productivity gains and customer experience gains and customer experience innovation through our deep innovation through our deep knowledge of the changing knowledge of the changing global consumer and global consumer and technology ” technology ” |
 NCR Confidential Expand and strengthen geographic presence & Sales coverage Expand and strengthen geographic presence & Sales coverage World-class people, training/development and company culture Strong foundation of corporate responsibility Penetrate adjacent single and multi- channel self-service solution segments Penetrate adjacent single and multi- channel self-service solution segments Travel & Lodging Travel & Lodging Healthcare & Public Sector Healthcare & Public Sector Telecommunications & Technology Telecommunications & Technology GAIN PROFITABLE SHARE Market share, wallet share, and mind share in our core industries: FINANCIAL SERVICES & RETAIL GAIN PROFITABLE SHARE Market share, wallet share, and mind share in our core industries: FINANCIAL SERVICES & RETAIL Software Business Model Focus Software Business Model Focus Our Business Strategy Entertainment Entertainment EXPAND INTO EMERGING GROWTH INDUSTRY SEGMENTS EXPAND INTO EMERGING GROWTH INDUSTRY SEGMENTS BUILD THE LOWEST COST STRUCTURE IN OUR INDUSTRY…CONTINUOUS IMPROVEMENT Product Development Operations Services Infrastructure Integrated Service Offers Maintenance Services – Managed Services – PS - Outsourcing Integrated Service Offers Maintenance Services – Managed Services – PS - Outsourcing Consumables |
 NCR Confidential Self-Service: Consumers Demand It….Businesses Depend On It. March 24, 2008 |
 NCR Confidential Consumers Choose Self-Service for Speed, Convenience and Ease-of-Use Across Industries Financial Retail Travel Healthcare Faster 61% 60% 57% 53% More Convenient 52% 54% 57% 46% Easier 46% 47% 48% 45% • 11% increase in likelihood to use self-service over 2007 survey results • 67% more likely to do business with companies that offer self-service choice
11% increase over 2007 survey results • Nearly 6 out 10 indicate Self-Service has positive impact on deployer’s
brand Source: Buzzback Market Research – April 2008 |
 NCR Confidential …And Consumers Are Becoming
Multi-Channel Multi-channel consumers spend 30% more Banking Retail Travel Hotel Healthcare To what degree would you personally use a combination of self-service devices… to perform a transaction? A Great Deal Somewhat Not at all Source: Buzzback Market Research – April 2008 96% 98% 97% 98% 95% |
      NCR Confidential Now More Than Ever…Self-Service
• Reduces operating costs; increases productivity and efficiency • Increases revenue • Enables businesses to differentiate and deliver consistent customer service • “Good” capex "... customer-facing projects were only half as likely to be cut as those that didn’t touch customers, and that ‘smart’ CIOs are looking for ways to use the IT tools at their disposal to cut costs in their organizations and in other parts of their companies.” |
 NCR Confidential Financial Industry Profile 18 |
 NCR Confidential Financial Services: NCR Addressable Market
2008 Addressable Market: $9.2B Core Markets: $7.8B Adjacent Markets: $1.4B |
 NCR Confidential Financial Industry Profile Value proposition remains strong globally • 49 billion ATM cash withdrawals worldwide 1 • A new ATM is installed every 6 minutes 1 • By maximizing the functionality of the existing ATM network in the U.S., the U.S. banking industry could save $2.25 billion per year 2 • By switching to intelligent deposit ATMs, the U.S. banking industry could save a net of $217 million per year 2 • New transactions of value; bill payment, remittance, electronic payroll • Financial service to the unbanked 1 ATMIA 2 NCR internal analysis |
 NCR Confidential Emerging Regions will Continue to Grow Only 27 ATM markets globally have reached a developed state . . . Still potential for another 1.4 million ATMs in emerging regions *Based on penetration of ATMs per 100k people for developed & emerging countries by
region. Source: Worldbank Database, Retail Banking Research, Internal Analysis |
  NCR Confidential Extending Beyond ATM with Multi-Channel
Applications Online Banking Mobile Banking • 40% of U.S. households banking online, growing at over 27% • Online banking represents 20% of overall retail revenue • 64% of institutions see strong retention after customers become online banking users and then online bill payers 1 Tower 2 AMR 3 Aite 1 2 3 |
 NCR Confidential • Acquired the leading provider of teller connectivity software • Introducing new, purpose-built hardware solutions • Multiple pilots underway in U.S. and Europe • Technology applies to multiple industries Retail Healthcare Gaming Travel NCR Moves into Cash Management |
 NCR Confidential Proven Leadership in Services • #1 Global ATM Service Provider Servicing 350,000+ ATMs in 100 countries High Availability monitoring of more than 110,000 ATMs Service Provider of Choice for 19 of the world’s top 20 Banks • #1 Provider of Outsourced, Channel Operational Services > 35,000 ATMs > 235,000 EFT/POS devices • Hosting financial applications for more than 60 Banks • Recognized as a Top 10 Hardware Support Provider (Gartner) • Acknowledged as a Top 100 Outsourcer (IAOP:
2008) |
 NCR Confidential Our investment plans for self-service over
the next 12-18 months will: ….Confirmed at Recent BAI
Conference Source: NCR Survey of 50 financial institutions at BAI Conference;
Orlando, FL, November 18-20 Our investment plans for self-service over the next
12-18 months will: Source: NCR Survey of 50 financial institutions at BAI
Conference; Orlando, FL, November 18-20 |
 NCR Confidential ….Focused NCR Investments Against Market
Priorities Integrate multi-channel delivery for a seamless customer experience Implement managed services/outsourcing for flexible access to best-in-class resources Deploy new transactions or channels through hosted services/software as a service model Refocus branch resources on sales activities vs. transactions processing Extend self-service channels to support small business customers Offer deposit-enabled self-service transactions
such as bill payment to non-customers Enhance account opening and deposit options Please prioritize your investment in the following technology initiatives for 2009 Source: NCR Survey of 50 financial institutions at BAI Conference; Orlando, FL, November
18-20 50% 40% 30% 20% 10% 0% |
  NCR Confidential NCR Remains Industry Leader NCR is the global market share leader in ATMs 22 consecutive years NCR attained the leadership position in shipments of ATMs to U.S. financial institutions for the 1 st time Winner of ATM design award in China |
 NCR Confidential Retail Industry Profile 28 |
 NCR Confidential Retail: NCR Addressable Market 2008 2009 2010 2011 Adjacent Self-Service Markets: $.5B 2008 Addressable Market: $9.4B Core Markets: $8.9B -.5% 2.2% 10.8% |
 NCR Confidential Self-Service Has Become a Retail
Imperative NCR SelfServ Checkout • Self-checkout now accounts for 20% of Tesco’s transactions in U.K., and 100% in US Fresh & Easy subsidiary • "The retailer (ASDA) is saving money with the shift to self-scan checkouts - with staff deployed elsewhere -…" Source: The Guardian • Market-leading solution installed in ~20 countries • > 50k units installed at > 125 global retailers • Strongest value proposition • Launched Release 5.0 latest generation Compact design for convenience, drug, and space constrained retailers Note and Coin Recycling 2ST Usability enhancements NCR APTRA Vision for systems management |
 NCR Confidential Retail Kiosks Create New Interactions In-Store Kiosk Applications • Loyalty Programs • Product Information • Pre-Order (deli, bakery) • Prescription Drop-off/Pick-Up North America 35% Europe 29% APAC 24% ROW 12% Source: Frost & Sullivan 2007 2008 Revenue Forecast Total Market < $1B NCR 29% Share North America 35% Europe 29% APAC 24% Source: Frost & Sullivan 2007 2008 Revenue Forecast Total Market < $1B NCR 29% Share |
 NCR Confidential Retail Point-of-Service Innovation
Continues NCR RealPOS 80XRT Modular POS • First to market with Intel Core2 Duo vPro/AMT technology with advanced manageability features • Competing well in global retail market • Significant installations with The Home Depot, Macy's, Target, and USPS • Continued innovation with new processors and high efficiency power supply RealPOS 70XRT Integrated POS • Targeted at hospitality segment with compact footprint design • Sets the standard for performance in the industry • Innovative EZ-Glide Blade System sets a new standard for serviceability with tool-free front access • Can reduce power consumption up to 50% Only company in the industry with a consistent roadmap leveraging Intel technology across the portfolio and extending it into self-service.
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 NCR Confidential “Sainsbury’s with NCR
for Sainsbury’s halves receipt paper usage” (As Published by 2008 European Retail Solutions Awards) NCR Consumables Strategy Driving profitable growth • 2ST licenses and royalties • Receipt on Label (RoL) • Labels • Channel and geographic expansion • Strengthen IP position Lowest Cost Structure • Manufacturing consolidation • Lean • ERP Up to a 45% Reduction |
 NCR Confidential Entertainment Industry Profile 34 |
 NCR Confidential Entertainment Market Source: Citibank Research and Sutton & Associates Vending Rental Channel Share (%) Stores Online CAGR -7% 3% 56% 2006 2010 Segments NCR Investments ISO Partners Buy/Sell/Trade ePlay Digital Media Delivery MOD Rental Touch Automation Ambient TNR ePlay |
 NCR Confidential Differentiated Entertainment Solutions • DVD Rental • Packaged Media Sell-Through • Buy / Sell / Trade • Digital Download • In-store Kiosk • Digital Portability • Home NCR Application Capabilities |
 NCR Confidential Healthcare & Public Sector Travel & Lodging Telecommunications & Technology • $45mm addressable market • 74% CAGR • Patient Registration • Revenue Cycle Management • Lab Results • Patient Portal • Rx Management #1 in Healthcare Self-Service Patient Registration • $241mm addressable market • 25% CAGR • Airline Check-in • Car Rental • Hotel/Resort Registration • Restaurant Order and Pay 4 of the Top 10 QSR Operators Most widely deployed CUSS platform Multi-billion dollar market Network design & implementation Wireless implementation Telco Bill Pay Largest Global Postal Deployment #2 in Airline Check-in - Emerging Industry Profiles |
 NCR Confidential NCR is Well Positioned to Deliver
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 NCR Confidential Creating Shareholder Value
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 NCR Confidential Evolution of Our Cost Structure Cost Savings Phase I and II • Phase I – G&A focused, completed 2007, $400mm • Phase II – Operations focused, started in 2007 • High Cost to Low Cost Regions • Manufacturing Restructuring • BPO • $150 – 200mm total savings; $75 – 100mm NPOI improvement from 2008 - 2010 UPDATE: $200 – 250mm savings from 2008 – 2010 |
 NCR Confidential Phase I and II • Phase I – G&A focused, completed 2007, $400mm • Phase II – Operations focused, started in 2007 • High Cost to Low Cost Regions • Manufacturing Restructuring • BPO • $150 – 200mm total savings; $75 – 100mm NPOI improvement from 2008 - 2010 Cost Savings Strategic Initiatives Product Development • Value Engineering • Product Lifecycle Management (DFx) • Engineering Productivity Evolution of Our Cost Structure |
 NCR Confidential Cost Savings Strategic Initiatives Operations • Value Engineering • Lean Enterprise • Low Cost Region Sourcing & Manufacturing Evolution of Our Cost Structure Product Development • Value Engineering • Product Lifecycle Management (DFx) • Engineering Productivity Phase I and II • Phase I – G&A focused, completed 2007, $400mm • Phase II – Operations focused, started in 2007 • High Cost to Low Cost Regions • Manufacturing Restructuring • BPO • $150 – 200mm total savings; $75 – 100mm NPOI improvement from 2008 - 2010
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 NCR Confidential Cost Savings Strategic Initiatives Services • Service Parts & Logistics • Productivity • Design for Serviceability Evolution of Our Cost Structure Product Development • Value Engineering • Product Lifecycle Management (DFx) • Engineering Productivity Operations • Value Engineering • Lean Enterprise • Low Cost Region Sourcing & Manufacturing Phase I and II • Phase I – G&A focused, completed 2007, $400mm • Phase II – Operations focused, started in 2007 • High Cost to Low Cost Regions • Manufacturing Restructuring • BPO • $150 – 200mm total savings; $75 – 100mm NPOI improvement from 2008 - 2010
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 NCR Confidential Cost Savings Strategic Initiatives G&A Infrastructure Evolution of Our Cost Structure • Back office • Real estate • Productivity Product Development • Value Engineering • Product Lifecycle Management (DFx) • Engineering Productivity Operations • Value Engineering • Lean Enterprise • Low Cost Region Sourcing & Manufacturing Services • Service Parts & Logistics • Productivity • Design for Serviceability Phase I and II • Phase I – G&A focused, completed 2007, $400mm • Phase II – Operations focused, started in 2007 • High Cost to Low Cost Regions • Manufacturing Restructuring • BPO • $150 – 200mm total savings; $75 – 100mm NPOI improvement from 2008 - 2010
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 NCR Confidential Cost Savings Strategic Initiatives Continuous Improvement • Institutionalize within NCR culture and operating model • Organization Design • Business Process Outsourcing (BPO) • Business Process Improvement (BPI) Evolution of Our Cost Structure Product Development • Value Engineering • Product Lifecycle Management (DFx) • Engineering Productivity Operations • Value Engineering • Lean Enterprise • Low Cost Region Sourcing & Manufacturing Services • Service Parts & Logistics • Productivity • Design for Serviceability G&A Infrastructure • Back office • Real estate • Productivity Phase I and II • Phase I – G&A focused, completed 2007, $400mm • Phase II – Operations focused, started in 2007 • High Cost to Low Cost Regions • Manufacturing Restructuring • BPO • $150 – 200mm total savings; $75 – 100mm NPOI improvement from 2008 - 2010
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 NCR Confidential Creating Shareholder Value
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 NCR Confidential Capital Structure Strategy Update • Board Authorized $583mm buy-back that we executed over the past year • Regular and ongoing evaluation of optimal capital structure strategy…follows business strategy • Capital allocation decision factors (ROIC): Pension Working capital Credit market conditions Macroeconomic conditions Acquisition opportunities |
 NCR Confidential Peter Dorsman SVP Operations Malcolm Collins SVP Sales John Bruno EVP Industry Solutions Group Alan Chow SVP CTO Andrea Ledford SVP Human Resources Chris Wallace SVP Services Peter Lieb SVP General Counsel Mel Walter VP Business Development Bill Nuti Chairman & CEO Dan Bogan VP Consumables Tony Massetti CFO Mike Webster VP Strategy & Communications NCR Executive Leadership Team |
 NCR Confidential Summary • We’ve done “what we said we would do” • Confident in our strategy • We will course correct to the realities of the markets • We’re confident in the long term |
 NCR Confidential Product Development Strategy Alan Chow SVP, Product & Solutions Development |
 NCR Confidential NCR Product & Solutions Development
• Innovation is alive and well at NCR • Focus on solution and process innovation • Savings recycled to fuel additional growth • Aligned with Operations and Services |
 NCR Confidential Solution Innovation Best-in-Class New Products NCR RealPOS 70XRT • 30% faster with ~50% less energy consumption • 1 Intel Vpro Core integrated POS terminal NCR 2ST Printers • Reduced Paper Cost • Fewer roll changes • Environmental benefit • Ability to print promotions, surveys etc. NCR SelfServ Checkout 5.0 • Reduced enclosure cost by consolidating product line into common components • Reduced Assembly time NCR SelfServ™ 20 & 30 • Fewer parts than Personas • Increased common modules & parts across the product line • Reduced Manufacturing & Service time NCR Aptra Mobile Banking Leading New Industries & Categories NCR Xpress Entertainment NCR Healthcare NCR Bill Pay NCR Digital Signage NCR Mobile Boarding Pass NCR SelfServ™ 60 • 1 Intel Vpro Core integrated kiosk • 32% lower service cost • Unique rear mounting and brandable cabinetry st st |
 NCR Confidential Process Innovation • Dedicated Value Engineering Teams • Product Lifecycle Management • Disruptive Technologies • Radical Redesign of Components • Common Platforms • SKU Reduction Common Application Software Platform Common Hardware Platform |
 NCR Confidential NCR Confidential Improving Time To Market Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2002 2003 2004 2005 2006 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2000 2001 7878 Scanner 2-Sided Receipt Printer 5th Generation Family Less Than 2 Years of Development 4 Generation Family 5 Years of Development Coin Recycling with Bulk Coin Input Note Recycling Option Increased Security Enclosure Custom Conversion - 1, 2, 3 Bag - Redesigned Takeaway Belt 4 Generation Family Additional Enhancements th th |
 NCR Confidential • Reduced assembly time on NCR SelfServ Checkout by 20% • 27% fewer unique parts on NCR SelfServ 20 / 30 ATMs • Freight savings > 30% via bulk pack of POS terminals • Increased inventory turns > 5% via fewer models • Improved diagnostic tools • Remote monitoring and management • Common service parts Alignment with Operations and Services Design for Manufacturability Design for Serviceability Product Lifecycle Management |
 NCR Confidential NCR Product & Solutions Development
• Innovation is alive and well at NCR • Focus on solution and process innovation • Savings recycled to fuel additional growth • Aligned with Operations and Services |
 Operations
Strategy Peter Dorsman SVP, Operations |
 58
NCR Confidential Operations Mission Delivering products more efficiently, with a higher degree of quality and reliability than our competition |
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NCR Confidential Operations Focus |
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NCR Confidential Operations Functions Product Product Development Development Manufacturing Operations Demand Planning Sourcing Manufacturing Operations Warehousing and Logistics Information Technology Continuous Improvement Customer Customer Services Services Fulfillment Fulfillment Make Make Source Source Plan Plan New New Product Product Intro Intro |
 61
NCR Confidential Manufacturing Network In-house and Contract Manufacturing Model Contract Manufacturing NCR Manufacturing Facilities NCR Fulfillment Centers Flex-Columbia, SC Dundee Puducherry Budapest Beijing Flex-Plano, TX Flex-Guadalajara Flex-Sorocaba Ebina Rotterdam Atlanta, GA MAC-Atlanta, GA Flytech-Taiwan TEC-Singapore GES Venture-Singapore |
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NCR Confidential Manufacturing Model • Dedicated New Product Introduction (NPI) and Rapid Prototyping Centers • Regional High Volume Production facilities • In-Theater final touch/configuration • Centralized Low-Cost Region (LCR) Global Support Organization • Flexible Labor Model (Core and Buffer) |
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NCR Confidential Contract Manufacturing Contract Manufacturing NCR Manufacturing Facilities NCR Manufacturing Facilities NCR Fulfillment Centers NCR Fulfillment Centers Flex-Columbia, SC Dundee Puducherry Budapest Beijing Flex-Plano, TX Flex-Guadalajara Flex-Sorocaba Ebina Rotterdam Atlanta, GA MAC-Atlanta, GA TEC-Singapore GES Venture-Singapore Supplier Network Local Supplier Base Contract Manufacturing NCR Manufacturing Facilities NCR Fulfillment Centers Dundee Puducherry Budapest Beijing Flex-Plano, TX Flex-Guadalajara Flex-Sorocaba Ebina Rotterdam Atlanta, GA Flytech-Taiwan |
 64
NCR Confidential Cost Improvements Facility Consolidation Process Standardization Value Engineering LEAN Enterprise Practices Flexible Workforce Supplier Collaboration & Consolidation Low Cost Region Sourcing Outsourcing |
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NCR Confidential Value Engineering • Aligned teams targeting cost reductions • Analytical approach, dedicated resources, rigorous reviews Engineering Manufacturing SLM Product Mgmt Finance Product Cost Engineering Manufacturing SLM Product Mgmt Finance Product Cost Engineering Manufacturing SLM Product Mgmt Finance Product Cost Engineering Manufacturing SLM Product Mgmt Finance Focus: Product Cost Engineering Manufacturing SLM Product Mgmt Finance Product Cost Engineering Manufacturing SLM Product Mgmt Finance Product Cost SelfServ 6622 RealPOS 70XRT SelfServ Checkout Focus: Organization Objectives Functional Silos with Different Objectives Previous Approach Value Engineering Teams |
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NCR Confidential Warehouse Consolidation • Reduce cost associated with multiple locations, shipments, and handoffs • Eliminate higher cost local staging • Improve overall quality with standardized/controlled approach • Reduce total capital invested in finished goods inventory • Improve customer experience – committed ship dates and consistency Consolidate local warehouses into regional fulfillment centers, performing ‘final touch’ staging and customer ready shipments. |
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NCR Confidential Working Capital - Inventory • Warehouse Consolidation • Sales and Operations Planning • Demand Planning • VMI / Hubbing • Supplier Campuses • SKU Reduction • Lean Practices 2007 2008 2009 Raw
Materials Finished Goods |
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NCR Confidential Customer Experience “End-to-End” Quality Approach Product Installation Delivery Order Management Design |
  69 NCR Confidential Information Technology Cost Customer Experience Working Capital • Electronic Data Interchange (EDI) • Tele-presence • Enterprise Resource Planning (ERP) Systems • Self-service Portal • On-line Ordering • Customer Asset Management Tools • Demand Planning • Business Analytics Technology Enablers |
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NCR Confidential Operations Functions Product Development Manufacturing Operations Demand Planning Sourcing Manufacturing Operations Warehousing and Logistics Information Technology Continuous Improvement Customer Services Fulfillment Make Source Plan New Product Intro |
 NCR Confidential Chris Wallace SVP, Services Services Strategy |
 NCR Confidential Services Overview Significant margin improvement; on track to achieve double digit return Ten consecutive quarters of service revenue growth Strengthened Customer & Employee relationships Productivity: 15% increase in CS revenue per employee over last 3 years Greater than 95% customer retention Performance: a Growing, Profitable Business Yokohama, Japan Winnipeg, Canada Atlanta, Georgia Buenos Aires, Argentina Budapest, Hungary Motherwell Scotland Sydney, Australia Mumbai, India |
 NCR Confidential Services Overview Innovative, end-to-end Service Portfolio Hardware + Software + Managed Services Differentiators: Why Customers choose NCR Significant margin improvement; on track to achieve double digit return Ten consecutive quarters of service revenue growth Strengthened Customer & Employee relationships Productivity: 15% increase in CS revenue per employee over last 3 years Superior technology platform allows NCR to deliver proactive service intelligence 24x7x365 global support enables customer scalability Trusted service partner in an uncertain economic environment Branded service delivery workforce (limited use of contractors) Greater than 95% customer retention Performance: a Growing, Profitable Business Yokohama, Japan Winnipeg, Canada Atlanta, Georgia Buenos Aires, Argentina Budapest, Hungary Motherwell Scotland Sydney, Australia Mumbai, India |
 NCR Confidential Organized Around the Customer Experience
Around the world, service customers want 1) timely response 2) fix it right the first time 3) keep me informed Centers of Excellence (COE) Global technology platform Consistent management discipline Global customer satisfaction measurement Business analytics powered by one of the world’s largest CS data warehouses Region-aligned to improve customer experience Field Repair Parts & Logistics Remote Support Managed Services Globally Coordinated and Supported |
 NCR Confidential What Customers Value… $8.2B Addressable Services Market by 2011 • High Availability • Technology driven opportunity • Cost reduction • Operational efficiency • Security / Privacy • Single service source • Focus on customer travel experience • Proactive incident mgmt. • Cost reduction • Customer convenience • Security / Privacy • Cost reduction • High availability • Security • Technology driven opportunity • High availability • Security / Privacy • Cost reduction Network Design Site Preparation SW Staging Onsite Installation Project Mgmt. HW Maintenance SW Maintenance & Support Service Mgmt. Help Desk Incident Mgmt. Currency Mgmt. SW Management Asset Mgmt. Hosting Remote Monitoring …NCR Service Offers • High availability • Security • Technology driven opportunity |
 NCR Confidential Network Design Services Site Assessment & Preparation Staging (preloading SW) Onsite Installation Project Management Electronic Journal HW Maintenance SW Maintenance & Support …can be Leveraged across New Industries Media Replenishment Consumer Help Desk Asset Acquisition New for this industry Leverage across industry Service Mgmt. Help Desk Incident Mgmt. Remote Monitoring Asset Mgmt. eCommerce Currency Mgmt. SW Management New growth at less cost = Margin Expansion Cash Services |
 NCR Confidential Innovation Centers of Excellence Remote Monitoring and Management Proactive / Predictive Availability New software support services Driving growth and efficiency Cost Optimization Rate, Mix, Productivity Remote Resolution Common Service Platform Parts & Logistics Cost obsession and business improvement Margin Expansion |
  NCR Confidential Center of Excellence Philosophy Drives innovation and best practices. Showcases NCR’s service value. Budapest COE Atlanta COE Customer Care Center & SW support Parts Logistics Training & Certification Design for Serviceability |
 NCR Confidential Proactive / Predictive Availability Incident Management Plus Transaction Monitoring Account Inquiry Envelope Deposit Withdrawal Transaction Thresholds/ Rules Dispatch & Repair/Replace 1. When threshold met 2. During remedial call to repair different module Increased availability and higher margins Service Innovations – APTRA Vision Remote Monitoring & Management Predict problems that haven’t yet occurred |
 NCR Confidential Services Margin Evolution Reactive Proactive Predictive Key Assumptions for Expansion • New industry penetration and leverage • Software support & maintenance growth • Retention through stellar customer satisfaction • Productivity gains through disciplined operations • APTRA Vision 2005 2006 2007 2008 2009 2010 2011 Cost Optimization Full Strategy Execution Service Delivery Approach Continuity, Progress, Performance Innovation |
 NCR Confidential • Customer Services is a strong and stable business Designed to grow/scale capability/leverage into new industries • Integrally linked with Engineering and Operations to deliver shareholder value • More than just service products - strategically critical to NCR’s future NCR as a software and service company Consumer focused – the ultimate satisfaction requirement Capable of owning and operating for customers • Poised to continue as a growth driver for the company • Plenty of opportunity for margin expansion through productivity and innovation Services Conclusions |
 NCR Confidential NCR Business Model Tony Massetti CFO |
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NCR Confidential Financial Overview – Key Discussion Points • NCR is executing well on its shareholder value levers, with strong YTD 2008 performance • Improving gross margin and significant cost reduction opportunities drive favorable NPOI growth outlook through 2011 • Working capital improvements are enhancing NCR’s cash flow generation capability • External economic and market factors create near-term pension headwinds and limit 2009 visibility |
 NCR Confidential Creating Shareholder Value
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 NCR Confidential NCR Revenue Trends Revenue - $ Millions Geographic Diversity (2008 Q3 YTD) Strong Growth |
 NCR Confidential Profitable Revenue Growth - 2007 to 2011 Core Solutions Emerging Industry Growth New Service Offers & Improved Attach Adjacent Solutions ~$375M ~$150M ~$375M ~$150M |
 NCR Confidential Revenue/Gross Margin by Geography Revenue 2006 2007 2008 Q3 YTD Americas 2,096 $ 2,148 $ 1,685 $ EMEA 1,675 $ 1,906 $ 1,508 $ APJ 811 $ 916 $ 701 $ Total 4,582 $ 4,970 $ 3,894 $ GM% 2006 2007 2008 Q3 YTD Americas 20.4% 20.1% 18.8% EMEA 22.9% 25.4% 27.1% APJ 24.0% 23.6% 24.5% Total 21.9% 22.8% 23.0% Gross Margin excludes non-operational items Revenue - $ Millions |
 NCR Confidential Creating Shareholder Value
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 NCR Confidential Optimizing Cost Structure – 2007 to 2011 • Value engineering • Product Lifecycle Management / DFx • Engineering productivity • Value engineering • Lean enterprise • Low cost region sourcing and manufacturing • Service Parts & Logistics • Productivity • Design for serviceability • Performance-based Reductions / Top grading & skills remix reinvestments • Lean/Six Sigma Training completed for 1 wave Company Organization Programs Product Development Operations Services st |
 NCR Confidential Creating Shareholder Value
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 NCR Confidential Strong Balance Sheet 9/30/08 Cash balance $733 Debt balance $308 Net cash position $425
Near term objectives • Stability • Liquidity • Financial Flexibility • Working Capital Improvements ( $ Millions) |
 NCR Confidential NCR Pension Discussion NCR Historical Pension Results 2002 2003 2004 2005 2006 2007 2008 Expense/(income) (74) 105 135 128 122 38 25-30 2002-2004 not adjusted for discontinued operations Cash Funding for Pension Plans 2005 2006 2007 2008E 2009E 2010E International & Executive 110 112 92 90 105-115 115-125 US Qualified Plan 0 0 0 0 0-30 10-170 2005-2007 not adjusted for discontinued operations 2010 US assumptions: 2008 return of -30% to -35% & discount rate of 8%; 2009
return of -10% to +10% & discount rate of 7% to 8% 2009 Hypothetical Pension
Expense Discount rate change from 12/31/2007 2008 Asset Return +125bps +150bps +175bps (25%) 100 85 70 (30%) 145 130 115 (35%) 190 175 160 ( $ Millions) |
 NCR Confidential Revenue & NPOI Growth Revenue, $ Millions NPOI, $ Millions YoY Growth % of Revenue 8 – 9% 0.5% $4,582 8.5% $4,970 6.0% $276 7.0% $349 7 - 8% ’07–2011e CAGR = ~5% 2011e = ~10% * NPOI excludes pension expense and non-operational items |
 NCR Confidential Working Capital Improvements Focus on working capital … … has yielded solid improvements in 2008 2007 2008 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Accounts Receivable 950 1,007 1,014 1,167 1,048 991 943 Days Sales Outstanding 86 77 71 69 80 67 62 Inventory Balance 678 704 767 717 752 735 711 Inventory Turns (rolling 4 qtr avg) 5.6 5.5 5.5 5.5 5.5 5.6 5.8 |
 NCR Confidential Free Cash Flow Generation 190 Cash flow from operations Capital Expenditures *NCR calculates Free Cash Flow as cash provided by operating activities less capital expenditures
for PP&E and additions to capitalized software ( $ Millions) 2006 2007 2008 Q3 YTD 144 151 112 105 307 Free Cash Flow* 46 39 202 … and a significant increase in Free Cash Flow |
 96
NCR Confidential In Summary • NCR is executing well on its shareholder value levers • Increased cost reduction targets provide additional support to NPOI growth outlook • We will manage the balance sheet for flexibility and liquidity in the near term, focusing on continued working capital improvement • Cash flow and earnings outlook subject to finalization of pension impact on 2009 – updates to come on 4 quarter earnings call th |
 NCR Confidential Questions |
Exhibit 99.2
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NEWS RELEASE |
December 3, 2008
NCR to hold Analyst Day on Dec. 4, 2008
DAYTON, Ohio – NCR Corporation (NYSE: NCR) will make presentations to the investment community on Dec. 4, 2008, regarding the company’s business strategy.
The presentation materials will be available on Dec. 4, 2008, on the NCR investor relations home page, http://investor.ncr.com.
About NCR Corporation
NCR Corporation (NYSE: NCR) is a global technology company and leader in automated teller machines, self-checkouts and other self- and assisted-service solutions, serving customers in more than 100 countries. NCR’s software, hardware, consulting and support services help organizations in retail, financial, travel, healthcare and other industries interact with consumers across multiple channels.
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NCR is a trademark of NCR Corporation in the United States and other countries.
Contact
| Investor Information: Gavin Bell NCR Corporation 212.589.8468 gavin.bell@ncr.com |
News Media Information: Alan Ulman NCR Corporation 770.623.7998 alan.ulman@ncr.com |