NCR Voyix (VYX) 8-K Regulation FD Disclosure

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

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.

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

NCR Confidential

Creating Shareholder Value

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

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

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

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

NCR Confidential

Creating Shareholder Value

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

59

NCR Confidential

Operations Focus

60

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

62

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)

63

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

65

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

66

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.

67

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

68

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

70

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

83

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

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

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

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