8-K

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): July 26, 2018

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.)

864 Spring Street NW

Atlanta, GA 30308

(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):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02.     Results of Operations and Financial Condition.

On July 26, 2018, the Company issued a press release setting forth its second quarter 2018 financial results along with its updated fiscal year 2018 financial outlook. A copy of the press release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

Item 7.01.     Regulation FD Disclosure.

On July 26, 2018, the Company will hold its previously announced conference call to discuss its second quarter 2018 results and updated fiscal year 2018 financial outlook. A copy of supplementary materials that will be referred to in the conference call, and which were posted to the Company’s website, is attached hereto as Exhibit 99.2.

Item 9.01        Financial Statements and Exhibits.

(d)    Exhibits:

The following exhibits are attached with this current report on Form 8-K:

Exhibit No.	Description
99.1	Press Release issued by the Company, dated July 26, 2018
99.2	Supplemental materials, dated July 26, 2018

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Index to Exhibits

The following exhibits are attached with this current report on Form 8-K:

Exhibit No.Description

99.1                Press Release issued by the Company, dated July 26, 2018

99.2                Supplemental materials, dated July 26, 2018

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 hereunto duly authorized.

NCR Corporation
By:	/s/ Robert Fishman
	Robert Fishman
	Executive Vice President and Chief Financial Officer

Date: July 26, 2018

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EX-99.1

NEWS RELEASE

July 26, 2018

NCR Announces Second Quarter 2018 Results

ATLANTA - NCR Corporation (NYSE: NCR) reported financial results today for the three months ended June 30, 2018. Second quarter highlights include:

• Revenue of $1.54 billion, down 4% as reported

• Software revenue up 1% driven by cloud revenue growth of 7%

• GAAP diluted EPS of $(1.31); Non-GAAP diluted EPS of $0.65

• Services revenue up 4% and gross margin expansion of 70 basis points

• Additional $200 million share repurchase authorized

• Guidance reduced for full year 2018

“Second quarter results were mixed and given current execution challenges we are lowering our full year outlook,” said Michael Hayford, President and Chief Executive Officer. “I spent my first ninety days engaging with customers and employees around the world and am excited about our long-term growth profile. We are taking a number of steps to address current challenges with the goal of accelerating our growth and driving improved utilization of our resources. We added new members to our executive leadership team and made other organizational changes that are focused on improving the quality and delivery of our solutions, simplifying our business, and putting a greater focus on customer voice and success."

Hayford continued, “NCR’s business model is sound and is supported by our global scale and ability to power transactions across multiple attractive markets. We will continue to lead with compelling software and services offerings that drive competitive advantage, diversify our revenue streams, and develop customer loyalty, while streamlining our costs. Execution of this strategy and building upon our global leadership will best position NCR to deliver sustainable shareholder value creation. Our focus on innovation will continue, but in the near term our priority will be on resolving our execution challenges.”

In this release, we use certain non-GAAP measures, including presenting certain measures on a constant currency basis. These non-GAAP measures include free cash flow and others with the words “non-GAAP," or "constant currency" in their titles. These non-GAAP measures are listed, described, and reconciled to their most directly comparable GAAP measures, under the heading "Non-GAAP Financial Measures" later in this release.

Second Quarter 2018 Operating Results

Revenue

Second quarter revenue of $1.54 billion was down 4% year-over-year. Foreign currency fluctuations had a favorable impact on the revenue comparison of 1%.

The following table shows the revenue by segment for the second quarter:

$ in millions	2018		2017		% Change		% Change Constant Currency
Software License	$	68	$	77	(12	%)	(13	%)
Software Maintenance	93		91		2	%	1	%
Cloud	155		145		7	%	7	%
Professional Services	154		151		2	%	—	%
Software Revenue	$	470	$	464	1	%	—	%
Services Revenue	$	610	$	588	4	%	3	%
ATM	$	180	$	227	(21	%)	(22	%)
SCO	99		96		3	%	3	%
POS	178		213		(16	%)	(18	%)
IPS	—		5		(100	%)	(100	%)
Hardware Revenue	$	457	$	541	(16	%)	(17	%)
Total Revenue	$	1,537	$	1,593	(4	%)	(5	%)

Software revenue was up 1% driven by cloud revenue growth of 7%. Software license revenue declined 12% primarily due to lower Hardware sales and unattached software licenses.

Services revenue was up 4% driven by hardware maintenance and implementation services growth, as well as continued momentum in managed service offerings.

Hardware revenue was down 16%. ATM revenue declined 21% primarily due to supply constraints related to higher than expected demand for new products. ATM orders increased for the second consecutive quarter, which is expected to drive improved revenue performance in the back half of the year. SCO revenue increased 3% due to the timing of customer roll-outs. POS revenue decreased 16% in the quarter compared to growth of 18% in the prior year, which benefited from several large customer roll-outs.

Gross Margin

Second quarter gross margin of $403 million was down from $461 million in the prior year period. Gross margin rate was 26.2%, down from 28.9%. The decrease in gross margin was primarily due to $41 million of costs incurred related to our restructuring and transformation initiatives. Second quarter gross margin (non-GAAP) of $449 million was down from $477 million in the prior year period. Gross margin rate (non-GAAP) was 29.2%, down from 29.9%. The decrease in gross margin (non-GAAP) was primarily due to lower software license and Hardware revenues, offset by continued focus on productivity improvements in our Services segment.

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Expenses

Second quarter operating expenses of $509 million increased from $286 million in the prior year period. The increase in operating expenses (GAAP) was primarily due to $183 million of asset impairment charges described below and $25 million of costs incurred related to restructuring and transformation initiatives. Second quarter operating expenses (non-GAAP) of $284 million increased from $265 million. The increase in operating expenses (non-GAAP) was due to continued investment in the business to improve execution.

Operating Income

Second quarter loss from operations of $106 milliondecreased from income from operations of $175 million in the prior year period. The decrease in income from operations was primarily due to $183 million of asset impairment charges described below and $66 million of costs incurred related to restructuring and transformation initiatives. Second quarter operating income (non-GAAP) of $165 million decreased from $212 million. Operating income (non-GAAP) reflected lower software license and Hardware revenue and continued investment in the business, partially offset by continued Services margin expansion.

Other (Expense)

Second quarter other (expense) and other (expense) (non-GAAP) of $50 million increased from $45 million compared to the prior year period.

Income Tax Expense

Second quarter income tax benefit of $12 million decreased from expense of $33 million compared to the prior year period. The second quarter effective income tax rate was 8% compared to 25% in the prior year. Second quarter income tax expense (non-GAAP) of $18 million decreased from $45 million in the prior year period. The second quarter effective income tax rate (non-GAAP) was 16% compared to 27% in the prior year. Income tax expenses decreased due to lower income before taxes in the quarter, favorable audit settlements and the impact of U.S. Tax Reform.

Net Income from Continuing Operations Attributable to NCR

Second quarter net loss from continuing operations attributable to NCR of $143 million decreased from net income of $97 million in the prior year period. Second quarter net income from continuing operations attributable to NCR (non-GAAP) of $97 million decreased from $122 million in the prior year.

Cash Flow

Second quarter cash provided by operating activities of $119 million increased from cash provided by operating activities of $95 million in the prior year period. Free cash flow was $27 million in the second quarter of 2018 as compared to $18 million in the second quarter of 2017. The increases were due to working capital improvements, primarily in accounts receivable.

Non-Cash Charges

In the second quarter of 2018, the Company recorded pre-tax asset impairment charges of approximately $183 million due to expected lower operating performance of the Hardware business. These non-cash charges included a $146 million pre-tax impairment of goodwill assigned to the Hardware operating segment, for which no goodwill remains after this impairment, and a $37 million pre-tax impairment charge related to long-lived assets held and used in our Hardware operations.

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Restructuring and Transformation Initiatives

Our previously announced restructuring and transformation initiatives continue to progress on track. In Services, our Mission One performance and profit improvement program continues to deliver revenue growth and margin expansion. In Hardware, we are moving to a more variable cost structure by reducing the number of manufacturing plants and increasing the use of contract manufacturers. We will continue to manage our costs and seek to capture operational efficiencies, as part of the normal course of business.

As part of these initiatives, in the second quarter of 2018 we incurred a $66 million pre-tax charge and $22 million of cash payments. In the six months ended June 30, 2018, we incurred a $82 million pre-tax charge and $36 million of cash payments. Our outlook remains unchanged and we still expect to incur a pre-tax charge over the next two years in the range of approximately $200 million to $250 million, with $100 million to $150 million in 2018, which will be included in income from operations. The cash impact is still expected to be approximately $150 million to $200 million over the next two years, with $100 million in 2018. We plan to achieve run-rate savings of approximately $150 million per year by 2020. The estimate of the pre-tax charges and cash impact has been included in our 2018 GAAP diluted earnings per share and free cash flow guidance.

Share Repurchase Program

NCR has repurchased shares of its common stock for approximately $45 million in the second quarter and $210 million in the first half of 2018 of the previously authorized $300 million share repurchase program.

Additionally, on July 25, 2018, the Company’s board of directors authorized an incremental $200 million of share repurchases. The timing and amount of any repurchases under the program will depend upon market conditions and will be made at the Company’s discretion. Repurchases under the program may be made from time to time in the open market, private transactions, accelerated stock repurchase programs, issuer self-tenders or otherwise, and may be discontinued at any time.

Full Year 2018 Outlook

We are reducing our full year 2018 guidance. The execution challenges surrounding product introductions, including supply chain constraints, is negatively impacting our revenue and costs versus our previous expectations. We are focused on improving execution in the current year to benefit 2019. Foreign currency has negatively impacted our revenue guidance by approximately $90 million and non-GAAP diluted earnings per share by approximately $0.08 from the previous quarter guidance. We now expect revenue growth to be (1)% to (3)%, (previous guidance of 0% to 3%). In addition to foreign currency, we have experienced softness in our Hardware revenue and to a lesser extent in our Software business, primarily due to execution challenges. Our view of ATM revenue growth is unchanged at roughly flat for the year and is supported by strong backlog.

GAAP diluted earnings per share is now expected to be $0.07 to $0.65 (previous guidance of $2.08 to $2.48), and non-GAAP diluted earnings per share to be $2.55 to $2.75 (previous guidance of $3.30 to $3.45). The decreases in diluted earnings per share is due to lower revenue, decreased gross margin rates in our Hardware business and continued investment to improve our execution. GAAP diluted earnings per share has also been impacted by the asset impairment charges described above. Non-GAAP diluted earnings per share guidance assumes an effective tax rate of 23% for 2018 compared to 25% in 2017. The decrease is due to the expected impact of U.S. Tax Reform. Free cash flow is now expected to be $300 million to $350 million or approximately 80% - 90% of non-GAAP net income. 

We expect approximately two-thirds of the full year decrease in non-GAAP diluted earnings per share guidance to impact the third quarter of 2018. We expect costs and expenses to be higher in the third quarter as we address our execution and supply challenges. Revenue is expected to be higher in the fourth quarter as the supply constraints are resolved and the higher backlog converts to revenue.

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2018Second Quarter Earnings Conference Call

A conference call is scheduled for today at 4:30 p.m. (EDT) to discuss the second quarter 2018 results and guidance for full year 2018. Access to the conference call and accompanying slides, as well as a replay of the call, are available on NCR's web site at http://investor.ncr.com/. Additionally, the live call can be accessed by dialing 888-820-9413 (United States/Canada Toll-free) or 786-460-7169 (International Toll) and entering the participant passcode 9669386.

More information on NCR’s Q22018 earnings, including additional financial information and analysis, is available on NCR’s Investor Relations website at http://investor.ncr.com/.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leader in omni-channel solutions, turning everyday interactions with businesses into exceptional experiences. With its software, hardware, and portfolio of services, NCR enables nearly 700 million transactions daily across financial, retail, hospitality, travel, telecom and technology industries. NCR solutions run the everyday transactions that make your life easier. NCR is headquartered in Atlanta, Ga., with about 30,000 employees and does business in 180 countries. NCR is a trademark of NCR Corporation in the United States and other countries. NCR encourages investors to visit its website which is updated regularly with financial and other important information about NCR.

Website: www.ncr.com

Twitter: @NCRCorporation

Facebook: www.facebook.com/ncrcorp

LinkedIn: https://www.linkedin.com/company/ncr-corporation

YouTube: www.youtube.com/user/ncrcorporation

News Media Contact

Scott Sykes

NCR Corporation

212.589.8428

scott.sykes@ncr.com

Investor Contact

Michael Nelson

NCR Corporation

678.808.6995

michael.nelson@ncr.com

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Note to Investors This release contains forward-looking statements. Forward-looking statements use words such as “expect,” “anticipate,” “outlook,” “intend,” “plan,” “believe,” “will,” “should,” “would,” “could,” and words of similar meaning. Statements that describe or relate to NCR’s plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. The forward-looking statements in this release include statements about NCR’s plans for further share repurchases; NCR’s revised financial guidance and outlook (including the sections entitled “Full Year 2018 Outlook” and the expected type and magnitude of the non-operational adjustments included in any forward-looking non-GAAP measures; NCR’s execution challenges and execution strategy; NCR’s expected areas of focus to drive growth and create long-term shareholder value; NCR’s software and services offerings; NCR’s plans to diversify revenue and streamline costs; NCR’s global leadership; expectations regarding ATM revenues and overall revenue in the second half of 2018; expectations for accelerating recurring revenue; NCR’s expected free cash flow generation and capital allocation strategy; and expected impact of NCR’s previously announced restructuring and transformation activities. Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of NCR’s control. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors relating to: the strength of demand for ATMs and other financial services hardware and its effect on the results of our businesses and reportable segments; domestic and global economic and credit conditions including, in particular, those resulting from the imposition or threat of protectionist trade policies or import or export tariffs, global and regional market conditions and spending trends in the financial services and retail industries, new comprehensive U.S. tax legislation, modified or new global or regional trade agreements, the determination by the United Kingdom to exit the European Union, uncertainty over further potential changes in Eurozone participation and fluctuations in oil and commodity prices; the transformation of our business model and our ability to sell higher-margin software and services; our ability to improve execution in our sales and services organizations; our ability to successfully introduce new solutions and compete in the information technology industry; cybersecurity risks and compliance with data privacy and protection requirements; the possibility of disruptions in or problems with our data center hosting facilities; defects or errors in our products; the impact of our indebtedness and its terms on our financial and operating activities; the historical seasonality of our sales; tax rates and new US tax legislation; foreign currency fluctuations; the success of our restructuring plans and cost reduction initiatives, including those in our Hardware segment; manufacturing disruptions, including those caused by or related to outsourced manufacturing; the availability and success of acquisitions, divestitures and alliances; our pension strategy and underfunded pension obligation; reliance on third party suppliers; the impact of the terms of our strategic relationship with Blackstone and our Series A Convertible Preferred Stock; our multinational operations, including in new and emerging markets; collectability difficulties in subcontracting relationships in certain geographical markets; development and protection of intellectual property; workforce turnover and the ability to attract and retain skilled employees; uncertainties or delays associated with the transition of key business leaders; environmental exposures from our historical and ongoing manufacturing activities; and uncertainties with regard to regulations, lawsuits, claims, and other matters across various jurisdictions. Additional information concerning these and other factors can be found in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8- K. Any forward-looking statement speaks only as of the date on which it is made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Non-GAAP Financial Measures

Non-GAAP Financial Measures. While NCR reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, in this release NCR also uses the non-GAAP measures listed and described below.

Non-GAAP Diluted Earnings Per Share (EPS), Gross Margin (non-GAAP), Gross Margin Rate (non-GAAP), Operating Expenses (non-GAAP), Operating Income (non-GAAP), Operating Margin Rate (non-GAAP), Other (Expense) (non-GAAP), Income Tax Expense (non-GAAP), Effective Income Tax Rate (non-GAAP), and Net Income from Continuing Operations Attributable to NCR (non-GAAP). NCR’s non-GAAP diluted EPS, gross margin (non-GAAP), gross margin rate (non-GAAP), operating expenses (non-GAAP), operating income (non-GAAP), operating margin rate (non-GAAP), other (expense) (non-GAAP), income tax expense (non-GAAP), effective income tax rate (non-GAAP), and net income from continuing operations attributable to NCR (non-GAAP) are determined by excluding, as applicable, pension mark-to-market adjustments, pension settlements, pension curtailments and pension special termination benefits and other special items, including amortization of acquisition related intangibles, from NCR’s GAAP earnings per share, gross margin, gross margin rate, expenses, income from operations, operating margin rate, other (expense), income tax expense, effective income tax rate and net income from continuing operations attributable to NCR, respectively. Due to the non-operational nature of these pension and other special items, NCR's management uses these non-GAAP measures to evaluate year-over-year operating performance. NCR also uses operating income (non-GAAP) and diluted EPS (non-GAAP), to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. NCR believes these measures are useful for investors because they provide a more complete understanding of NCR's underlying operational performance, as well as consistency and comparability with NCR's past reports of financial results.

Free Cash Flow and Free Cash Flow as a Percentage of Non-GAAP Net Income (or Free Cash Flow Conversion Rate). NCR defines free cash flow as net cash provided by/used in operating activities and cash flow provided by/used in discontinued operations less capital expenditures for property, plant and equipment, additions to capitalized software, discretionary pension contributions and pension settlements. NCR's management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures, which can be used for, among other things, investment in the Company's existing businesses, strategic acquisitions, strengthening the Company's balance sheet, repurchase of Company stock and repayment of the Company's debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. NCR also describes the ratio of free cash flow to non-GAAP net income (or free cash flow conversion rate), which is calculated as free cash flow divided by non-GAAP net income. NCR’s management targets an annual free cash flow conversion rate at or above the range described in this release because management believes that a conversion rate at or above that range represents the efficient conversion of non-GAAP net income to free cash flow for its business. Free cash flow and free cash flow conversion rate do not have uniform definitions under GAAP and, therefore, NCR's definitions may differ from other companies' definitions of these measures.

Constant Currency. NCR presents certain financial measures, such as period-over-period revenue growth, on a constant currency basis, which excludes the effects of foreign currency translation by translating prior period results at current period monthly average exchange rates. Due to the overall variability of foreign exchange rates from period to period, NCR’s management uses constant currency measures to evaluate period-over-period operating performance on a more consistent and comparable basis. NCR’s management believes that presentation of financial measures without this result is more representative of the company's period-over-period operating performance, and provides additional insight into historical and/or future performance, which may be helpful for investors.

NCR's definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. These non-GAAP measures are reconciled to their most directly comparable GAAP measures in the tables below.

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Reconciliation of Gross Margin (GAAP) to Gross Margin (non-GAAP)

$ in millions	Q2 2018		Q2 2017
Gross Margin (GAAP)	$	403	$	461
Transformation & Restructuring costs	41		4
Acquisition-related amortization of intangibles	5		12
Gross Margin (Non-GAAP)	$	449	$	477

Reconciliation of Gross Margin Rate (GAAP) to Gross Margin Rate (non-GAAP)

	Q2 2018		Q2 2017
Gross Margin Rate (GAAP)	26.2	%	28.9	%
Transformation and Restructuring costs	2.7	%	0.3	%
Acquisition-related amortization of intangibles	0.3	%	0.7	%
Gross Margin Rate (Non-GAAP)	29.2	%	29.9	%

Reconciliation of Operating Expenses (GAAP) to Operating Expenses (non-GAAP)

$ in millions	Q2 2018			Q2 2017
Operating Expenses (GAAP)	$	509		$	286
Transformation and Restructuring costs	(25		)	(4		)
Asset impairment charges	(183		)	—
Acquisition-related amortization of intangibles	(16		)	(16		)
Acquisition-related costs	(1		)	(1		)
Operating Expenses (Non-GAAP)	$	284		$	265

Reconciliation of Income from Operations (GAAP) to Operating Income (non-GAAP)

$ in millions	Q2 2018			Q2 2017
(Loss) Income from Operations (GAAP)	$	(106	)	$	175
Transformation and Restructuring costs	66			8
Asset impairment charges	183			—
Acquisition-related amortization of intangibles	21			28
Acquisition-related costs	1			1
Operating Income (Non-GAAP)	$	165		$	212

Reconciliation of Income Tax Expense (GAAP) to Income Tax Expense (non-GAAP)

$ in millions	Q2 2018			Q2 2017
Income Tax (Benefit) Expense (GAAP)	$	(12	)	$	33
Transformation and Restructuring costs	16			2
Asset impairment charges	8			—
Acquisition-related amortization of intangibles	4			9
Acquisition-related costs	—			1
Impact of U.S. tax reform	2			—
Income Tax Expense (Non-GAAP)	$	18		$	45

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Reconciliation of Net Income (Loss) from Continuing Operations Attributable to NCR (GAAP) to

Net Income from Continuing Operations Attributable to NCR (non-GAAP)

$ in millions	Q2 2018			Q2 2017
Net (Loss) Income from Continuing Operations Attributable to NCR (GAAP)	$	(143	)	$	97
Transformation and Restructuring costs	50			6
Asset impairment charges	174			—
Acquisition-related amortization of intangibles	17			19
Acquisition-related costs	1			—
Impact of U.S. tax reform	(2		)	—
Net Income from Continuing Operations Attributable to NCR (Non-GAAP)	$	97		$	122

Reconciliation of Diluted Earnings (Loss) Per Share (GAAP) to Non-GAAP Diluted Earnings Per Share (non-GAAP)

	Q2 2018 Actual			Q2 2017 Actual		Current FY 2018 Guidance (2)	Prior FY 2018 Guidance (2)
Diluted Earnings (Loss) Per Share (GAAP) (1)	$	(1.31	)	$	0.64	$0.07- $0.65	$2.08 - $2.48
Transformation & Restructuring costs	0.34			0.04		0.50 - 0.75	0.50 - 0.75
Asset impairment charges	1.17			—		1.16	—
Acquisition-related amortization of intangibles	0.11			0.12		0.42	0.42
Acquisition-related costs	0.01			—		0.05	0.05
Impact of U.S. tax reform	(0.01		)	—		—	—
Diluted Earnings Per Share (non-GAAP) (1)	$	0.65		$	0.80	$2.55- $2.75	$3.30 - $3.45

⁽¹⁾   Non-GAAP diluted EPS is determined using the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of weighted average diluted shares outstanding. GAAP EPS is determined using the most dilutive measure, either including the impact of dividends or deemed dividends on the Company's Series A Convertible Preferred Stock in the calculation of net income or loss available to common stockholders or including the impact of the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of the weighted average diluted shares outstanding. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile.

⁽²⁾  Except for the adjustments noted herein, this guidance does not include the effects of any future acquisitions/divestitures, pension mark-to-market adjustments, taxes or other events, which are difficult to predict and may or may not be significant.

Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP)

$ in millions	Q2 2018 QTD			Q2 2017 QTD			Current 2018 Guidance
Net cash provided by operating activities	$	119		$	95		$690 - $720
Total capital expenditures	(85		)	(75		)	(330) - (350)
Net cash used in discontinued operations	(7		)	(2		)	(40	)
Free cash inflow	$	27		$	18		$300 - $350

Note: Capital expenditures in Q2 2018 and Q2 2017 included $22 million and $16 million, respectively, related to our new world headquarters. Net cash provided by operating activities in Q2 2018 and Q2 2017 included $14 million and $22 million, respectively, of reimbursement from the landlord.

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Reconciliation of Revenue Growth % (GAAP) to

Revenue Growth Constant Currency % (non-GAAP)

	Three months ended June 30, 2018
	Revenue Growth % (GAAP)	Favorable (unfavorable) FX impact	Revenue Growth Constant Currency % (non-GAAP)
Software License	(12)%	1%	(13)%
Software Maintenance	2%	1%	1%
Cloud	7%	—%	7%
Professional Services	2%	2%	—%
Software	1%	1%	—%
Services	4%	1%	3%
ATMs	(21)%	1%	(22)%
SCO	3%	—%	3%
POS	(16)%	2%	(18)%
IPS	(100)%	—%	(100)%
Hardware	(16)%	1%	(17)%
Total Revenue	(4)%	1%	(5)%

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NCR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions, except per share amounts) Schedule A

	For the Periods Ended June 30
	Three Months						Six Months
	2018			2017			2018			2017
Revenue
Products	$	525		$	618		$	1,051		$	1,172
Services	1,012			975			2,003			1,899
Total Revenue	1,537			1,593			3,054			3,071
Cost of products	451			478			871			902
Cost of services	683			654			1,360			1,296
Total gross margin	403			461			823			873
% of Revenue	26.2		%	28.9		%	26.9		%	28.4		%
Selling, general and administrative expenses	261			228			506			458
Research and development expenses	65			58			131			125
Asset impairment charges	183			—			183			—
(Loss) Income from operations	(106		)	175			3			290
% of Revenue	(6.9		)%	11.0		%	0.1		%	9.4		%
Interest expense	(41		)	(41		)	(82		)	(80		)
Other (expense), net	(9		)	(4		)	(14		)	(9		)
Total other (expense), net	(50		)	(45		)	(96		)	(89		)
(Loss) Income before income taxes and discontinued operations	(156		)	130			(93		)	201
% of Revenue	(10.1		)%	8.2		%	(3.0		)%	6.5		%
Income tax (benefit) expense	(12		)	33			(5		)	47
(Loss) Income from continuing operations	(144		)	97			(88		)	154
(Loss) Income from discontinued operations, net of tax	(2		)	5			(37		)	5
Net (loss) income	(146		)	102			(125		)	159
Net loss attributable to noncontrolling interests	(1		)	—			—			—
Net (loss) income attributable to NCR	$	(145	)	$	102		$	(125	)	$	159
Amounts attributable to NCR common stockholders:
(Loss) income from continuing operations	$	(143	)	$	97		$	(88	)	$	154
Dividends on convertible preferred stock	(12		)	(12		)	(24		)	(24		)
Deemed dividend on modification of convertible preferred stock	—			—			—			(4		)
Deemed dividend on convertible preferred shares related to redemption	—			—			—			(58		)
Net (loss) income from continuing operations attributable to NCR common stockholders	(155		)	85			(112		)	68
(Loss) income from discontinued operations, net of tax	(2		)	5			(37		)	5
Net (loss) income attributable to NCR common stockholders	$	(157	)	$	90		$	(149	)	$	73
Net (loss) income per share attributable to NCR common stockholders:
Net (loss) income per common share from continuing operations
Basic	$	(1.31	)	$	0.70		$	(0.94	)	$	0.56
Diluted	$	(1.31	)	$	0.64		$	(0.94	)	$	0.53
Net (loss) income per common share
Basic	$	(1.33	)	$	0.74		$	(1.26	)	$	0.60
Diluted	$	(1.33	)	$	0.67		$	(1.26	)	$	0.57
Weighted average common shares outstanding
Basic	117.9			121.4			118.6			122.1
Diluted	117.9			152.7			118.6			127.2

⁽¹⁾ Diluted EPS is determined using the most dilutive measure, either including the impact of the dividends and deemed dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss per common share from continuing operations and net income or loss per common share or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding.

11

NCR CORPORATION
REVENUE AND OPERATING INCOME SUMMARY
(Unaudited)
(in millions) Schedule B

	For the Periods Ended June 30
	Three Months								Six Months
	2018			2017			% Change	% Change Constant Currency	2018			2017			% Change	% Change Constant Currency
Revenue by segment
Software	$	470		$	464		1%	—%	$	930		$	916		2%	—%
Software Gross Margin Rate	47.4		%	48.9		%			47.6		%	50.1		%
Services	610			588			4%	3%	1,211			1,145			6%	3%
Services Gross Margin Rate	25.9		%	25.2		%			24.9		%	23.5		%
Hardware	457			541			(16)%	(17)%	913			1,010			(10)%	(12)%
Hardware Gross Margin Rate	14.9		%	18.9		%			14.8		%	17.8		%
Total Revenue	$	1,537		$	1,593		(4)%	(5)%	$	3,054		$	3,071		(1)%	(3)%
Gross Margin Rate	29.2		%	29.9		%			28.8		%	29.6		%
Operating income by segment
Software	$	115		$	127				$	224		$	251
% of Revenue	24.5		%	27.4		%			24.1		%	27.4		%
Services	77			74					139			118
% of Revenue	12.6		%	12.6		%			11.5		%	10.3		%
Hardware	(27		)	11					(50		)	1
% of Revenue	(5.9		)%	2.0		%			(5.5		)%	0.1		%
Subtotal-segment operating income	$	165		$	212				$	313		$	370
% of Revenue	10.7		%	13.3		%			10.2		%	12.0		%
Other adjustments (1)	271			37					310			80
Total income (loss) from operations	$	(106	)	$	175				$	3		$	290

⁽¹⁾  The following table presents the other adjustments for NCR:

	For the Periods Ended June 30
	Three Months				Six Months
In millions	2018		2017		2018		2017
Transformation and restructuring costs	$	66	$	8	$	82	$	21
Asset impairment charges	183		—		183		—
Acquisition-related amortization of intangible assets	21		28		44		57
Acquisition-related costs	1		1		1		2
Total other adjustments	$	271	$	37	$	310	$	80

12

NCR CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited) (in millions, except per share amounts) Schedule C

	June 30, 2018			March 31, 2018			December 31, 2017
Assets
Current assets
Cash and cash equivalents	$	343		$	348		$	537
Accounts receivable, net	1,272			1,338			1,270
Inventories	842			822			780
Other current assets	282			283			243
Total current assets	2,739			2,791			2,830
Property, plant and equipment, net	326			338			341
Goodwill	2,590			2,746			2,741
Intangibles, net	517			556			578
Prepaid pension cost	127			129			118
Deferred income taxes	472			474			460
Other assets	593			607			586
Total assets	$	7,364		$	7,641		$	7,654
Liabilities and stockholders’ equity
Current liabilities
Short-term borrowings	$	160		$	34		$	52
Accounts payable	711			697			762
Payroll and benefits liabilities	229			190			219
Contract liabilities	469			538			458
Other current liabilities	310			385			398
Total current liabilities	1,879			1,844			1,889
Long-term debt	2,952			3,038			2,939
Pension and indemnity plan liabilities	796			810			798
Postretirement and postemployment benefits liabilities	132			133			133
Income tax accruals	127			131			148
Other liabilities	258			245			200
Total liabilities	6,144			6,201			6,107
Redeemable noncontrolling interests	12			16			15
Series A convertible preferred stock: par value $0.01 per share, 3.0 shares authorized, 0.8 shares issued and outstanding as of June 30, 2018, March 31, 2018 and December 31, 2017	834			822			810
Stockholders' equity
NCR stockholders' equity:
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding as of June 30, 2018, March 31, 2018 and December 31, 2017	—			—			—
Common stock: par value $0.01 per share, 500.0 shares authorized, 117.7, 118.3 and 122.0 shares issued and outstanding as of June 30, 2018, March 31, 2018 and December 31, 2017	1			1			1
Paid-in capital	—			—			60
Retained earnings	594			782			857
Accumulated other comprehensive loss	(224		)	(184		)	(199		)
Total NCR stockholders' equity	371			599			719
Noncontrolling interests in subsidiaries	3			3			3
Total stockholders' equity	374			602			722
Total liabilities and stockholders' equity	$	7,364		$	7,641		$	7,654

13

NCR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions) Schedule D

	For the Periods Ended June 30
	Three Months						Six Months
	2018			2017			2018			2017
Operating activities
Net (loss) income	$	(146	)	$	102		$	(125	)	$	159
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Loss (income) from discontinued operations	2			(5		)	37			(5		)
Depreciation and amortization	85			87			171			172
Stock-based compensation expense	26			22			40			41
Deferred income taxes	(3		)	7			1			4
Gain on sale of property, plant and equipment and other assets	—			(1		)	—			(1		)
Impairment of long-lived and other assets	193			—			193			—
Changes in assets and liabilities:
Receivables	73			(11		)	(41		)	(28		)
Inventories	(46		)	(25		)	(88		)	(126		)
Current payables and accrued expenses	20			(11		)	(57		)	(93		)
Contract liabilities	(75		)	(46		)	—			50
Employee benefit plans	(5		)	(9		)	(8		)	(6		)
Other assets and liabilities	(5		)	(15		)	(28		)	(33		)
Net cash provided by operating activities	119			95			95			134
Investing activities
Expenditures for property, plant and equipment	(41		)	(32		)	(70		)	(43		)
Additions to capitalized software	(44		)	(43		)	(86		)	(84		)
Other investing activities, net	—			1			(3		)	—
Net cash used in investing activities	(85		)	(74		)	(159		)	(127		)
Financing activities
Short term borrowings, net	3			10			2			13
Payments on term credit facilities	—			(14		)	(34		)	(25		)
Payments on revolving credit facilities	(515		)	(420		)	(1,013		)	(615		)
Borrowings on revolving credit facilities	550			375			1,163			855
Repurchases of Company common stock	(45		)	—			(210		)	(350		)
Proceeds from employee stock plans	6			5			11			8
Tax withholding payments on behalf of employees	(18		)	(2		)	(29		)	(24		)
Other financing activities	—			(1		)	—			(1		)
Net cash used in financing activities	(19		)	(47		)	(110		)	(139		)
Cash flows from discontinued operations
Net cash used in discontinued operations	(7		)	(2		)	(11		)	(5		)
Effect of exchange rate changes on cash and cash equivalents	(13		)	4			(8		)	12
Decrease in cash, cash equivalents, and restricted cash	(5		)	(24		)	(193		)	(125		)
Cash, cash equivalents and restricted cash at beginning of period	355			406			543			507
Cash, cash equivalents, and restricted cash at end of period	$	350		$	382		$	350		$	382

14

EX-99.2

Q2 2018 EARNINGS CONFERENCE CALL MICHAEL HAYFORD, PRESIDENT & CEO BOB FISHMAN, CFO July 26, 2018

NOTES TO INVESTORS FORWARD-LOOKING STATEMENTS. Comments made during this conference call and in these materials contain forward- looking statements. Statements that describe or relate to NCR's plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. The forward-looking statements in these materials include statements about NCR’s revised full year 2018 financial guidance and the expected type and magnitude of the non- operational adjustments included in any forward-looking non-GAAP measures; NCR's manufacturing network redesign; NCR's cloud revenue momentum; NCR's Mission One (M1) Services initiative and its expected benefits on NCR's services margin profile; expectations regarding ATM orders driving revenue in the back half of the year; NCR's expected areas of focus to drive growth and create long-term shareholder value; targeted mergers and acquisitions, expectations for accelerating recurring revenue; and NCR's expected free cash flow generation and capital allocation strategy. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors listed in Item 1a "Risk Factors" of NCR's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 26, 2018, and those factors detailed from time to time in NCR's other SEC reports. These materials are dated July 26, 2018, and NCR does not undertake any obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. NON-GAAP MEASURES. While NCR reports its results in accordance with generally accepted accounting principles in the United States (GAAP), comments made during this conference call and in these materials will include or make reference to certain "non-GAAP" measures, including: selected measures, such as period-over-period revenue growth, expressed on a constant currency basis, gross margin rate (non-GAAP), diluted earnings per share (non-GAAP), free cash flow (FCF), gross margin (non-GAAP), free cash flow as a percentage of non-GAAP net income (or free cash flow conversion rate), net debt, adjusted EBITDA, the ratio of net debt to adjusted EBITDA, operating expenses (non-GAAP), operating income (non-GAAP), interest and other expense (non-GAAP), income tax expense (non-GAAP), effective income tax rate (non-GAAP), and net income (non-GAAP). These measures are included to provide additional useful information regarding NCR's financial results, and are not a substitute for their comparable GAAP measures. Explanations of these non- GAAP measures, and reconciliations of these non-GAAP measures to their directly comparable GAAP measures, are included in the accompanying "Supplementary Materials" and are available on the Investor Relations page of NCR's website at www.ncr.com. Descriptions of many of these non-GAAP measures are also included in NCR's SEC reports. USE OF CERTAIN TERMS. As used in these materials, (i) the term "recurring revenue" means the sum of cloud, hardware maintenance and software maintenance revenue, (ii) the term “net annual contract value” or “net ACV” for any particular period means NCR’s net bookings for cloud revenue during the period, and is calculated as twelve months of expected subscription revenues under new cloud contracts during such period less twelve months of subscription revenues under cloud contracts that expired or were terminated during such period, adjusted for twelve months of expected pricing discounts or price increases from renewals of existing contracts, and (iii) the term "CC" means constant currency. These presentation materials and the associated remarks made during this conference call are integrally related and are intended to be presented and understood together. 2

EARLY OBSERVATIONS VALUE of the NCR Brand Important CUSTOMER RELATIONSHIPS all over the world Well ESTABLISHED global sales distribution network Dedicated EMPLOYEES that enable NCR to succeed 3

TOP PRIORITIES Take CARE of our INNOVATE STREAMLINE Accelerate customers & bring high the GROWTH quality solutions business to market faster Create long-term shareholder value • Maintain focus on cost efficiencies • Reallocate cash investments to highest growth opportunities • Drive higher recurring revenue and better predictability • Grow free cash flow, share repurchase and targeted product M&A and selected partnerships • Investor Day November 7th 4

Q2 2018 FINANCIAL RESULTS Non-GAAP Gross Revenue Margin Rate FX FX Benefit Benefit $17 million 30 bps $1.59 $1.54 29.9% 29.2% billion billion Q2 2017 Q2 2018 Q2 2017 Q2 2018 Revenue down 4% as reported and down 5% CC; Non-GAAP gross margin rate down 70 bps as Recurring revenue up 4%, 48% of total revenue reported and down 100 bps CC Non-GAAP Diluted EPS Free Cash Flow FX Benefit $0.02 $27 $0.80 $0.65 $18 million million Q2 2017 Q2 2018 Q2 2017 Q2 2018 Non-GAAP Diluted EPS down 19% Free Cash Flow up due to as reported and 20% CC working capital improvements 5

Q2 2018 SEGMENT RESULTS Software Revenue Services Revenue Hardware Revenue Down Up 4% Up 1% $610 16% $588 million $541 $464 $470 million million $457 million million million Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Software Gross Margin Services Gross Margin Hardware Gross Margin Up 70 Down 48.9% Down 47.4% 150 bps bps 400 bps 25.9% 25.2% 18.9% 14.9% Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 6

SOFTWARE Q2 2018 Update % Change Q2 2018 Q2 2017 % Change Constant Currency Software License $68 $77 (12)% (13)% Attached License 23 27 (15)% (17)% Unattached License 45 50 (10)% (10)% Software Maintenance 93 91 2% 1% Cloud 155 145 7% 7% Professional Services 154 151 2% —% Software Revenue $470 $464 1% —% Software Gross Margin $223 $227 (2)% (3)% Software Gross Margin Rate 47.4% 48.9% (150) bps (150) bps Operating Income $115 $127 (9)% (10)% Operating Income as a % of Revenue 24.5% 27.4% (290) bps (280) bps KEY HIGHLIGHTS $ in millions • Cloud revenue up 7%; Net ACV of $14M indicating continued growth • Software License down 12% primarily due to lower hardware sales and unattached software licenses • Operating income down driven by lower Software License revenue and continued investment partially offset by Cloud and Software Maintenance margin expansion. 7

SERVICES Q2 2018 Update % Change Q2 2018 Q2 2017 % Change Constant Currency Services Revenue $610 $588 4% 3% Services Gross Margin $158 $148 7% 7% Services Gross Margin Rate 25.9% 25.2% +70 bps +100 bps Operating Income $77 $74 4% 7% Operating Income as a % of Revenue 12.6% 12.6% — bps +40 bps $ in millions KEY HIGHLIGHTS • Increase in revenue driven by hardware maintenance and implementation services as a result of continued momentum in managed service offerings and channel transformation trends. • Increased wallet share from the current install base driven by improved customer satisfaction • Operating income increased due to sustainable improvements achieved through Mission One (M1) initiative offset by continued investment • M1 initiative is a performance and profit improvement program focused on transforming NCR’s services margin profile through: 1) Productivity and efficiency improvements; 2) Remote diagnostics and repair; 3) Product life- cycle management; and 4) A higher mix of managed services 8

HARDWARE Q2 2018 Update % Change Q2 2018 Q2 2017 % Change Constant Currency ATMs $180 $227 (21)% (22)% Self-Checkout (SCO) 99 96 3% 3% Point-of-Sale (POS) 178 213 (16)% (18)% Interactive Printer Solutions (IPS) — 5 (100)% (100)% Hardware Revenue $457 $541 (16)% (17)% Hardware Gross Margin $68 $102 (33)% (37)% Hardware Gross Margin Rate 14.9% 18.9% (400) bps (500) bps Operating Income ($27) $11 (345)% (264)% Operating Income as a % of Revenue (5.9%) 2.0% (790) bps (890) bps $ in millions KEY HIGHLIGHTS • ATM revenue down due to supply constraints related to higher demand for new products; ATM orders increased for the second consecutive quarter, which is expected to drive improved revenue performance in the back half of the year • SCO revenue up due to timing of customer roll-outs • POS revenues down compared to growth of 18% in the prior year which benefited from several large customer roll-outs • Operating income decreased due to lower Hardware revenue and unfavorable product mix • Manufacturing network redesign progressing as planned 9

FREE CASH FLOW, NET DEBT & EBITDA Free Cash Flow Q2 2018 Q2 2017 YTD 2018 YTD 2017 Cash Provided by Operating Activities $119 $95 $95 $134 Total capital expenditures (1) (85) (75) (156) (127) Cash used in Discontinued Operations (7) (2) (11) (5) Free Cash Flow $27 $18 ($72) $2 $ in millions (1) Capital expenditures in Q2 2018 and Q2 2017 included $22 million and $16 million, respectively related to our new world headquarters. Cash provided by Operating Activities in Q2 2018 and Q2 2017 included $14 million and $22 million, respectively, of reimbursement from the landlord. Net Debt & EBITDA Q2 2018 Q2 2017 Debt $3,112 $3,282 Cash (343) (377) Net Debt $2,769 $2,905 Adjusted EBITDA (2) $1,073 $1,111 Net Debt / Adjusted EBITDA 2.6x 2.6x $ in millions (2) Adjusted EBITDA for the trailing twelve-month period 10

2018 GUIDANCE Previous FY 2018 Guidance Current FY 2018 Guidance Revenue Growth 0% - 3% (1)% - (3)% GAAP Diluted EPS (1) $2.08 - $2.48 $0.07- $0.65 Non-GAAP Diluted EPS $3.30 - $3.45 $2.55- $2.75 $300 - $350 million Free Cash Flow ~90% Conversion Rate ~ 80 - 90% Conversion Rate (1) The current year 2018 GAAP diluted EPS guidance includes $183 million, or $1.16 per share, of asset impairment charges for goodwill and other long-lived assets related to the Hardware segment. Additionally, the restructuring and transformation charge included in our current year 2018 GAAP diluted EPS guidance has not changed. For all other GAAP to non-GAAP adjustments, refer to the reconciliations included in the supplemental materials. 11

LOOKING FORWARD Accelerate growth; Primarily recurring revenue Improve the quality and delivery of our products and services Focus on customer satisfaction Act with a sense of urgency Drive free cash flow and invest in projects that generate the highest long term return on capital 12

SUPPLEMENTARY MATERIALS 13

Q2 2018 GAAP RESULTS % Change As Q2 2018 Q2 2017 Reported Revenue $1,537 $1,593 (4)% Gross Margin 403 461 (13)% Gross Margin Rate 26.2% 28.9% Operating Expenses 509 286 78% % of Revenue 33.1% 18.0% Operating (Loss) Income (1) (106) 175 (161)% % of Revenue (6.9)% 11.0% Interest and other expense (50) (45) 11% Income Tax (Benefit) Expense (12) 33 (136)% Effective Income Tax Rate 8% 25% Net (Loss) Income ($143) $97 (247)% Diluted EPS ($1.31) $0.64 (305)% in millions, except per share amounts (1) Q2 2018 results included $183 million of pre-tax asset impairment charges related to goodwill and other long-lived assets associated with the Hardware segment and $66 million of costs incurred related to the restructuring and transformation initiatives. 14

Q2 2018 OPERATIONAL RESULTS % Change % Change As Constant Q2 2018 Q2 2017 Reported Currency Revenue $1,537 $1,593 (4)% (5)% (1) Gross Margin (non-GAAP) 449 477 (6)% (8)% Gross Margin Rate (non-GAAP) 29.2% 29.9% (70) bps (100) bps Operating Expenses (non-GAAP) 284 265 7% 6% % of Revenue 18.5% 16.6% Operating Income (non-GAAP) 165 212 (22)% (24)% % of Revenue 10.7% 13.3% (260) bps (270) bps Interest and other expense (non-GAAP) (50) (45) 11% 8% Income Tax Expense (non-GAAP) 18 45 (60)% Effective Income Tax Rate (non-GAAP) 16% 27% Net Income (non-GAAP) $97 $122 (20)% (22)% Diluted EPS (non-GAAP) (2) $0.65 $0.80 (19)% (20)% in millions, except per share amounts (1) The impact of foreign currency was $17 million favorable in Q2 2018. (2) Q2 2018 includes $0.02 of foreign currency benefit on EPS. Diluted share count of 149.2 million in Q2 2018 and 152.7 million in Q2 2017. 15

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 information regarding NCR's financial results, and are not a substitute for their comparable GAAP measures. Operating Income (non-GAAP), Diluted EPS (non-GAAP), Gross Margin (non-GAAP), Gross Margin Rate (non-GAAP), Interest and Other expense (non-GAAP), Effective Income Tax Rate (non-GAAP), Net Income (non-GAAP), Operating Expenses (non-GAAP) and Income Tax Expense (non-GAAP). NCR’s operating income (non-GAAP), diluted earnings per share (non-GAAP), gross margin (non- GAAP), gross margin rate (non-GAAP), interest and other expense (non-GAAP), effective income tax rate (non-GAAP), and net income (non-GAAP), operating expenses (non-GAAP) and income tax expense (non-GAAP) are determined by excluding pension mark-to- market adjustments, pension settlements, pension curtailments and pension special termination benefits and other special items, including amortization of acquisition related intangibles, from NCR's GAAP income (loss) from operations, earnings per share, gross margin, gross margin rate, interest and other expense, effective income tax rate, net income, operating expenses and income tax expense, respectively. Due to the non-operational nature of these pension and other special items, NCR's management uses these non-GAAP measures to evaluate year-over-year operating performance. NCR also uses operating income (non-GAAP) and non-GAAP diluted EPS, to manage and determine the effectiveness of its business managers and as a basis for incentive compensation. NCR believes these measures are useful for investors because they provide a more complete understanding of NCR's underlying operational performance, as well as consistency and comparability with NCR's past reports of financial results. Free Cash Flow and Free Cash Flow as a Percentage of Non-GAAP Net Income (or Free Cash Flow Conversion Rate). NCR defines free cash flow as net cash provided by/used in operating activities and cash flow provided by/used in discontinued operations less capital expenditures for property, plant and equipment, additions to capitalized software, discretionary pension contributions and pension settlements. NCR's management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for, among other things, investment in the Company's existing businesses, strategic acquisitions, strengthening the Company's balance sheet, repurchase of Company stock and repayment of the Company's debt obligations. NCR also describes free cash flow as a percentage of non-GAAP net income (or free cash flow conversion rate), which is calculated as free cash flow divided by non- GAAP net income. NCR’s management targets an annual free cash flow conversion rate at or above the range described in these materials because management believes that a conversion rate at or above that range represents the efficient conversion of non- GAAP net income to free cash flow for its business. Free cash flow and free cash flow conversion rate do not have uniform definitions under GAAP and, therefore, NCR's definitions may differ from other companies' definition of these measures. 16

NON-GAAP MEASURES Constant Currency. NCR presents certain financial measures, such as period-over-period revenue growth, on a constant currency basis, which excludes the effects of foreign currency translation by translating prior period results at current period monthly average exchange rates. Due to the overall variability of foreign exchange rates from period to period, NCR’s management uses constant currency measures to evaluate period-over-period operating performance on a more consistent and comparable basis. NCR’s management believes that presentation of financial measures without these results is more representative of the company's period- over-period operating performance, and provides additional insight into historical and/or future performance, which may be helpful for investors.which the company is able to convert its non-GAAP net income to cash. Net Debt and Adjusted EBITDA. NCR believes that Net Debt provides useful information to investors because NCR’s management reviews Net Debt as part of its management of overall liquidity, financial flexibility, capital structure and leverage. In addition, certain debt rating agencies, creditors and credit analysts monitor NCR’s Net Debt as part of their assessments of NCR’s business. NCR determines Net Debt based on its total debt less cash and cash equivalents, with total debt being defined as total short-term borrowings plus total long-term debt. NCR believes that Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) provides useful information to investors because it is an indicator of the strength and performance of the Company's ongoing business operations, including its ability to fund discretionary spending such as capital expenditures, strategic acquisitions and other investments. NCR determines Adjusted EBITDA for a given period based on its GAAP income (loss) from continuing operations plus interest expense, net; plus income tax expense (benefit); plus depreciation and amortization; plus other income (expense); plus pension expense (benefit); and plus special items. NCR believes that its ratio of net debt to Adjusted EBITDA provides useful information to investors because it is an indicator of the company's ability to meet its future financial obligations. NCR believes that its ratio of Net Debt to Adjusted EBITDA provides useful information to investors because it is an indicator of the company's ability to meet its future financial obligations. In addition, the Net Debt to Adjusted EBITDA ratio is measures frequently used by investors and credit rating agencies. The Net Debt to Adjusted EBITDA ratio is calculated by dividing Net Debt by trailing twelve- month Adjusted EBITDA. NCR management's definitions and calculations of these non-GAAP measures may differ from similarly-titled measures reported by other companies and cannot, therefore, be compared with similarly-titled measures of other companies. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP. These non-GAAP measures are reconciled to their corresponding GAAP measures in the following slides and elsewhere in these materials. These reconciliations and other information regarding these non-GAAP measures are also available on the Investor Relations page of NCR's website at www.ncr.com. 17

GAAP TO NON-GAAP RECONCILIATION Net Income from Continuing Operations (GAAP) to Adjusted EBITDA (non-GAAP) Q2 2018 Q2 2017 in millions LTM LTM Net Income from Continuing Operations (GAAP) ($2) $335 Pension Mark-to-Market Adjustments 28 85 Transformation/Restructuring Costs 90 32 Acquisition-Related Amortization of Intangibles 102 116 Acquisition-Related Costs 4 6 Asset Impairment Charges 183 — Divestiture and Liquidation Losses — 1 Net (Income) Loss from Continuing Operations Attributable to Noncontrolling Interests (3) (6) Interest Expense 165 161 Interest Income (3) (4) Depreciation and Amortization 243 217 Income Taxes 190 95 Stock Compensation Expense 76 73 Adjusted EBITDA (non-GAAP) $1,073 $1,111 in millions 18

GAAP TO NON-GAAP RECONCILIATION Q2 2018 QTD Transformation Acquisition- Q2 QTD Asset Acquisition- Impact of and related Q2 QTD 2018 2018 Impairment related U.S. Tax Restructuring amortization of non-GAAP GAAP charges costs Reform in millions (except per share amounts) costs intangibles Product revenue $525 $— $— $— $— $— $525 Service revenue 1,012 — — — — — 1,012 Total revenue 1,537 — — — — — 1,537 Cost of products 451 (32) — (2) — — 417 Cost of services 683 (9) — (3) — — 671 Gross margin 403 41 — 5 — — 449 Gross margin rate 26.2% 2.7% —% 0.3% —% —% 29.2% Selling, general and administrative expenses 261 (22) — (16) (1) — 222 Research and development expenses 65 (3) — — — — 62 Asset impairment charges 183 — (183) — — — — Total operating expenses 509 (25) (183) (16) (1) — 284 Total operating expense as a % of revenue 33.1% (1.6)% (11.9)% (1.0)% (0.1)% —% 18.5% Income from operations (106) 66 183 21 1 — 165 Income from operations as a % of revenue (6.9)% 4.2% 11.9% 1.4% 0.1% —% 10.7% Interest and Other (expense) income, net (50) — — — — — (50) Income from continuing operations before income (156) 66 183 21 1 — 115 taxes Income tax expense (12) 16 8 4 — 2 18 Effective income tax rate 8% 16% Income from continuing operations (144) 50 175 17 1 (2) 97 Net income attributable to noncontrolling interests (1) — 1 — — — — Income from continuing operations (attributable to ($143) $50 $174 $17 $1 ($2) $97 NCR) Diluted earnings per share ($1.31) $0.34 $1.17 $0.11 $0.01 ($0.01) $0.65 Diluted shares outstanding 117.9 149.2 19

GAAP TO NON-GAAP RECONCILIATION Q2 2018 QTD Q2 QTD 2018 Q2 QTD 2018 GAAP non-GAAP in millions (except per share amounts) Income from continuing operations attributable to NCR common stockholders: Income from continuing operations (attributable to NCR) $(143) $97 Dividends on convertible preferred shares (12) — Income from continuing operations attributable to NCR common $(155) $97 stockholders Weighted average outstanding shares: Weighted average diluted shares outstanding 117.9 121.1 Weighted as-if converted preferred shares — 28.1 Total shares used in diluted earnings per share 117.9 149.2 Diluted earnings per share (1) ($1.31) $0.65 (1) GAAP EPS is determined using the most dilutive measure, either including the impact of the dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss available to common stockholders or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding. Non-GAAP EPS is always determined using the as-if converted preferred shares and shares that would be issued for stock compensation awards. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may be calculated using different methods, and may not mathematically reconcile. 20

GAAP TO NON-GAAP RECONCILIATION Q2 2017 QTD Acquisition- Acquisition- Q2 QTD 2017 Transformation related Q2 QTD 2017 related Costs amortization of GAAP costs non-GAAP intangibles in millions (except per share amounts) Product revenue $618 $— $— $— $618 Service revenue 975 — — — 975 Total revenue 1,593 — — — 1,593 Cost of products 478 — (6) — 472 Cost of services 654 (4) (6) — 644 Gross margin 461 4 12 — 477 Gross margin rate 28.9% 0.3% 0.7% —% 29.9% Selling, general and administrative expenses 228 (3) (16) (1) 208 Research and development expenses 58 (1) — — 57 Total expenses 286 (4) (16) (1) 265 Total expense as a % of revenue 18.0% (0.3)% (1.0)% (0.1)% 16.6% Income from operations 175 8 28 1 212 Income from operations as a % of revenue 11.0% 0.5% 1.7% 0.1% 13.3% Interest and Other (expense) income, net (45) — — — (45) Income from continuing operations before income taxes 130 8 28 1 167 Income tax expense 33 2 9 1 45 Effective income tax rate 25% 27% Income from continuing operations 97 6 19 — 122 Net income attributable to noncontrolling interests — — — — — Income from continuing operations (attributable to NCR) $97 $6 $19 $— $122 Diluted (loss) earnings per share $0.64 $0.04 $0.12 $— $0.80 Diluted shares outstanding 152.7 152.7 21

GAAP TO NON-GAAP RECONCILIATION Q2 2017 QTD Q2 QTD 2017 Q2 QTD 2017 GAAP non-GAAP in millions (except per share amounts) Income from continuing operations attributable to NCR common stockholders: Income from continuing operations (attributable to NCR) $97 $122 (Loss) Income from continuing operations attributable to NCR common $97 $122 stockholders Weighted average outstanding shares: Weighted average diluted shares outstanding 126.1 126.1 Weighted as-if converted preferred shares 26.6 26.6 Total shares used in diluted earnings per share 152.7 152.7 Diluted (loss) earnings per share (1) $0.64 $0.80 (1) GAAP EPS is determined using the most dilutive measure, either including the impact of the dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss available to common stockholders or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding. Non-GAAP EPS is always determined using the as-if converted preferred shares and shares that would be issued for stock compensation awards. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may be calculated using different methods, and may not mathematically reconcile. 22

GAAP TO NON-GAAP RECONCILIATION Q2 2018 YTD Transformation Acquisition- Asset Acquisition- Impact of Q2 2018 YTD and related Q2 2018 YTD Impairment related U.S. Tax Restructuring amortization of GAAP charges costs Reform non-GAAP in millions (except per share amounts) costs intangibles Product revenue $1,051 $— $— $— $— $— $1,051 Service revenue 2,003 — — — — — 2,003 Total revenue 3,054 — — — — — 3,054 Cost of products 871 (32) — (6) — — 833 Cost of services 1,360 (13) — (6) — — 1,341 Gross margin 823 45 — 12 — — 880 Gross margin rate 26.9% 1.5% —% 0.4% —% —% 28.8% Selling, general and administrative expenses 506 (32) — (32) (1) — 441 Research and development expenses 131 (5) — — — — 126 Asset impairment charges 183 — (183) — — — — Total expenses 820 (37) (183) (32) (1) — 567 Total expense as a % of revenue 26.9% (1.3)% (6.0)% (1.0)% —% —% 18.6% Income from operations 3 82 183 44 1 — 313 Income from operations as a % of revenue 0.1% 2.7% 6.0% 1.4% —% —% 10.2% Interest and Other (expense) income, net (96) — — — — — (96) Income from continuing operations before income taxes (93) 82 183 44 1 — 217 Income tax expense (5) 20 8 9 — 2 34 Effective income tax rate 5% 16% Income from continuing operations (88) 62 175 35 1 (2) 183 Net income attributable to noncontrolling interests — — 1 — — — 1 Income from continuing operations (attributable to ($88) $62 $174 $35 $1 ($2) $182 NCR) Diluted earnings per share ($0.94) $0.41 $1.16 $0.23 $0.01 ($0.01) $1.21 Diluted Shares outstanding 118.6 150.5 23

GAAP TO NON-GAAP RECONCILIATION Q2 2018 YTD Q2 2018 YTD Q2 2018 YTD GAAP non-GAAP in millions (except per share amounts) Income from continuing operations attributable to NCR common stockholders: Income from continuing operations (attributable to NCR) $(88) $182 Dividends on convertible preferred shares (24) — Income from continuing operations attributable to NCR common $(112) $182 stockholders Weighted average outstanding shares: Weighted average diluted shares outstanding 118.6 122.6 Weighted as-if converted preferred shares — 27.9 Total shares used in diluted earnings per share 118.6 150.5 Diluted earnings per share (1) ($0.94) $1.21 (1) GAAP EPS is determined using the most dilutive measure, either including the impact of the dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss available to common stockholders or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding. Non-GAAP EPS is always determined using the as-if converted preferred shares and shares that would be issued for stock compensation awards. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may be calculated using different methods, and may not mathematically reconcile. 24

GAAP TO NON-GAAP RECONCILIATION Q2 2017 YTD Acquisition- Acquisition- Q2 2017 YTD Transformation related Q2 2017 YTD related costs amortization GAAP costs non-GAAP in millions (except per share amounts) of intangibles Product revenue $1,172 $— $— $— $1,172 Service revenue 1,899 — — — 1,899 Total revenue 3,071 — — — 3,071 Cost of products 902 (2) (13) — 887 Cost of services 1,296 (8) (12) — 1,276 Gross margin 873 10 25 — 908 Gross margin rate 28.4% 0.4% 0.8% —% 29.6% Selling, general and administrative expenses 458 (7) (32) (2) 417 Research and development expenses 125 (4) — — 121 Total expenses 583 (11) (32) (2) 538 Total expense as a % of revenue 19.0% (0.4)% (1.0)% (0.1)% 17.5% Income from operations 290 21 57 2 370 Income from operations as a % of revenue 9.4% 0.6% 1.9% 0.1% 12.0% Interest and Other (expense) income, net (89) — — — (89) Income from continuing operations before income taxes 201 21 57 2 281 Income tax expense 47 6 18 1 72 Effective income tax rate 23% 26% Income from continuing operations 154 15 39 1 209 Net income attributable to noncontrolling interests — — — — — Income from continuing operations (attributable to NCR) $154 $15 $39 $1 $209 Diluted earnings per share $0.53 $0.10 $0.25 $0.01 $1.35 Diluted Shares outstanding 127.2 154.7 25

GAAP TO NON-GAAP RECONCILIATION Q2 2017 YTD Q2 2017 YTD Q2 2017 YTD GAAP non-GAAP in millions (except per share amounts) Income from continuing operations attributable to NCR common stockholders: Income from continuing operations (attributable to NCR) $154 $209 Dividends on convertible preferred shares (24) — Deemed dividend on modification of convertible preferred shares (4) — Deemed dividend on convertible preferred shares related to redemption value (58) — accretion Income from continuing operations attributable to NCR common $68 $209 stockholders Weighted average outstanding shares: Weighted average diluted shares outstanding 127.2 127.2 Weighted as-if converted preferred shares — 27.5 Total shares used in diluted earnings per share 127.2 154.7 Diluted earnings per share (1) $0.53 $1.35 (1) GAAP EPS is determined using the most dilutive measure, either including the impact of the dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss available to common stockholders or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding. Non-GAAP EPS is always determined using the as-if converted preferred shares and shares that would be issued for stock compensation awards. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may be calculated using different methods, and may not mathematically reconcile. 26

GAAP TO NON-GAAP RECONCILIATION FY 2017 Acquisition- Acquisition- Pension mark- FY 2017 Transformation related Impact of U.S. FY 2017 related to-market Costs amortization Tax Reform GAAP costs adjustments non-GAAP in millions (except per share amounts) of intangibles Product revenue $2,579 $— $— $— $— $— $2,579 Service revenue 3,937 — — — — — 3,937 Total revenue 6,516 — — — — — 6,516 Cost of products 2,021 (2) (25) — — — 1,994 Cost of services 2,639 (9) (25) — — — 2,605 Gross margin 1,856 11 50 — — — 1,917 Gross margin rate 28.5% 0.1% 0.8% —% —% —% 29.4% Selling, general and administrative expenses 923 (14) (65) (5) — — 839 Research and development expenses 242 (4) — — — — 238 Total expenses 1,165 (18) (65) (5) — — 1,077 Total expense as a % of revenue 17.9% (0.3)% (1.0)% (0.1)% —% —% 16.5% Income from operations 691 29 115 5 — — 840 Income from operations as a % of revenue 10.6% 0.4% 1.8% 0.1% —% —% 12.9% Interest and Other (expense) income, net (209) — — — 28 — (181) Income from continuing operations before 482 29 115 5 28 — 659 income taxes Income tax expense (benefit) 242 9 36 2 3 (130) 162 Effective income tax rate 50% 25% Income from continuing operations 240 20 79 3 25 130 497 Net income attributable to noncontrolling 3 — — — — — 3 interests Income from continuing operations $237 $20 $79 $3 $25 $130 $494 (attributable to NCR) Diluted earnings per share $1.01 $0.13 $0.51 $0.02 $0.16 $0.84 $3.20 Diluted Shares outstanding 127.0 154.3 27

GAAP TO NON-GAAP RECONCILIATION FY 2017 FY 2017 FY 2017 GAAP non-GAAP in millions (except per share amounts) Income from continuing operations attributable to NCR common stockholders: Income from continuing operations (attributable to NCR) $237 $494 Dividends on convertible preferred shares (47) — Deemed dividend on modification of convertible preferred shares (4) — Deemed dividend on convertible preferred shares related to redemption value (58) — accretion Income from continuing operations attributable to NCR common $128 $494 stockholders Weighted average outstanding shares: Weighted average diluted shares outstanding 127.0 127.0 Weighted as-if converted preferred shares — 27.3 Total shares used in diluted earnings per share 127.0 154.3 Diluted earnings per share (1) $1.01 $3.20 (1) GAAP EPS is determined using the most dilutive measure, either including the impact of the dividends on NCR's Series A Convertible Preferred Shares in the calculation of net income or loss available to common stockholders or including the impact of the conversion of such preferred stock into common stock in the calculation of the weighted average diluted shares outstanding. Non-GAAP EPS is always determined using the as-if converted preferred shares and shares that would be issued for stock compensation awards. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may be calculated using different methods, and may not mathematically reconcile. 28

GAAP TO NON-GAAP RECONCILIATION Q2 2018 QTD Gross Margin and Gross Margin Rate (non-GAAP) to Gross Margin and Gross Margin Rate (GAAP) Q2 2018 QTD Gross Margin Gross Margin Rate % Software 223 47.4% Services 158 25.9% Hardware 68 14.9% Total Gross Margin (non-GAAP) 449 29.2% Less: Transformation Costs 41 2.7% Acquisition-related amortization of intangibles 5 0.3% Total Gross Margin (GAAP) 403 26.2% 29

GAAP TO NON-GAAP RECONCILIATION Q2 2017 QTD Gross Margin and Gross Margin Rate (non-GAAP) to Gross Margin and Gross Margin Rate (GAAP) Q2 2017 QTD Gross Margin Gross Margin Rate % Software 227 48.9% Services 148 25.2% Hardware 102 18.9% Total Gross Margin (non-GAAP) 477 29.9% Less: Transformation Costs 4 0.3% Acquisition-related amortization of intangibles 12 0.7% Total Gross Margin (GAAP) 461 28.9% 30

GAAP TO NON-GAAP RECONCILIATION Q2 2018 QTD Operating Income and Operating Income Rate (non-GAAP) to Operating Income and Operating Income Rate (GAAP) Q2 2018 QTD Operating Operating Income Income Rate Software 115 24.5% Services 77 12.6% Hardware (27) (5.9)% Total Operating Income (non-GAAP) 165 10.7% Less: Transformation & Restructuring costs 66 4.2% Asset Impairment charges 183 11.9% Acquisition-related amortization of intangibles 21 1.4% Acquisition-related costs 1 0.1% Total Operating Income (GAAP) (106) (6.9)% 31

GAAP TO NON-GAAP RECONCILIATION Q2 2017 QTD Operating Income and Operating Income Rate (non-GAAP) to Operating Income and Operating Income Rate (GAAP) Q2 2017 QTD Operating Operating Income Income Rate Software 127 27.4% Services 74 12.6% Hardware 11 2.0% Total Operating Income (non-GAAP) 212 13.3% Less: Transformation Costs 8 0.5% Acquisition-related amortization of intangibles 28 1.7% Acquisition-related costs 1 0.1% Total Operating Income (GAAP) 175 11.0% 32

GAAP TO NON-GAAP RECONCILIATION Revenue Growth % (GAAP) to Revenue Growth Constant Currency % (non-GAAP) Q2 2018 QTD Revenue Growth Revenue Growth Favorable Constant % (GAAP) (unfavorable) FX Currency % impact (non-GAAP) Software License (12)% 1% (13)% Attached License (15)% 2% (17)% Unattached License (10)% —% (10)% Software Maintenance 2% 1% 1% Cloud 7% —% 7% Professional Services 2% 2% —% Software 1% 1% —% Services 4% 1% 3% ATMs (21)% 1% (22)% Self-Checkout (SCO) 3% —% 3% Point-of-Sale (POS) (16)% 2% (18)% Interactive Printer Solutions (IPS) (100)% —% (100)% Hardware (16)% 1% (17)% Total Revenue (4)% 1% (5)% 33

GAAP TO NON-GAAP RECONCILIATION Gross Margin Growth % (GAAP) to Gross Margin Growth % on a Constant Currency Basis (non-GAAP) Q2 2018 QTD Constant Gross Margin Favorable Currency Gross Growth % (unfavorable) FX Margin Growth % Reported impact (non-GAAP) Software (2)% 1% (3)% Services 7% —% 7% Hardware (33)% 4% (37)% Total Gross Margin (6)% 2% (8)% 34

GAAP TO NON-GAAP RECONCILIATION Operating Income Growth % (GAAP) to Operating Income Growth % on a Constant Currency Basis (non-GAAP) Q2 2018 QTD Constant Operating Income Favorable Currency Growth % (unfavorable) FX Operating Income Reported impact Growth % (non- GAAP) Software (9)% 1% (10)% Services 4% (3)% 7% Hardware (345)% 81% (264)% Total Operating Income (22)% 2% (24)% 35

GAAP TO NON-GAAP RECONCILIATION Gross Margin Growth bps (GAAP) to Gross Margin Growth bps on a Constant Currency Basis (non-GAAP) Q2 2018 QTD Constant Favorable Currency Gross Gross Margin bps (unfavorable) FX Margin bps Growth Reported impact Growth (non- GAAP) Software (150) bps — bps (150) bps Services 70 bps (30) bps 100 bps Hardware (400) bps 100 bps (500) bps Total Gross Margin bps (70) bps 30 bps (100) bps 36

GAAP TO NON-GAAP RECONCILIATION Operating Income Growth bps (GAAP) to Operating Income Growth bps on a Constant Currency Basis (non-GAAP) Q2 2018 QTD Constant Operating Income Favorable Currency bps Growth (unfavorable) FX Operating Income Reported impact bps Growth (non- GAAP) Software (290) bps (10) bps (280) bps Services — bps (40) bps 40 bps Hardware (790) bps 100 bps (890) bps Total Operating Income (260) bps 10 bps (270) bps 37

GAAP TO NON-GAAP RECONCILIATION Diluted Earnings per Share Current 2018 Prior 2018 Guidance Guidance Diluted EPS (GAAP) (1) (2) $0.07- $0.65 $2.08 - $2.48 Transformation & Restructuring costs 0.50 - 0.75 0.50 - 0.75 Asset impairment charges 1.16 — Acquisition-Related Amortization of Intangibles 0.42 0.42 Acquisition-Related Costs 0.05 0.05 Non-GAAP Diluted EPS (1) (3) $2.55- $2.75 $3.30 - $3.45 (1) Non-GAAP diluted EPS is determined using the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of weighted average diluted shares outstanding. GAAP EPS is determined using the most dilutive measure, either including the impact of dividends or deemed dividends on the Company's Series A Convertible Preferred Stock in the calculation of net income or loss available to common stockholders or including the impact of the conversion of the Series A Convertible Preferred Stock into common stock in the calculation of the weighted average diluted shares outstanding. Therefore, GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile. (2) Except for the adjustments noted herein, this guidance does not include the effects of any future acquisitions/divestitures, pension mark-to-market adjustments, taxes or other events, which are difficult to predict and which may or may not be significant. (3) For FY 2018, we have assumed OIE of approximately $205 million, an effective tax rate of 23% and a share count of 151 million compared to OIE of $181 million, an effective tax rate of 25% and a share count of 154 million in FY 2017. 38

GAAP TO NON-GAAP RECONCILIATION Free Cash Flow 2018 Guidance Cash Provided by Operating Activities $690 - $720 Total capital expenditures (1) (330) - (350) Cash used in Discontinued Operations (40) Free Cash Flow $300 - $350 $ in millions (1) Total capital expenditures includes approximately $75 million related to the new world headquarters in Atlanta, Georgia. This $75 million is offset by $23 million of expected reimbursements by the lessor included in net cash provided by operating activities 39

40