NCR Atleos : Q1 2024 Earnings Presentation Final

First Quarter 2024 Earnings Call

Tuesday, May 14th, 2024

Tim Oliver, President & Chief Executive Officer

Paul Campbell, Chief Financial Officer

Stuart Mackinnon, Chief Operating

Officer

1

FORWARD-LOOKING STATEMENTS

NCR Atleos Corporation ("NCR Atleos," "Atleos" or the "Company") cautions that comments made during this presentation and in these materials contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements use words such as "estimate," "expect," "target," "anticipate," "outlook," "intend," "plan," "confident," "believe," "will," "would," "potential," "positioned," "may," and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to the Company's plans, targets, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in these materials include, without limitation, statements regarding the future commercial or financial performance of the Company following the separation from NCR Voyix Corporation ("Voyix"), and value creation and ability to innovate and drive growth generally as a result of such transaction; the expected financial performance of the Company for 2024; the Company's net leverage ratio targets for year-end 2024 and long-term; our expected areas of focus and strategy to drive growth and profitability and create long-term stockholder value, including key performance indicator targets and expectations for 2024; the Company's focus on advancing strategic growth initiatives and transforming the Company into a software-ledATM-as-a-service company with a higher mix of recurring revenue streams, including the Company's focus on driving efficiencies and standardizing cloud-native service offerings; statements regarding redeployment priorities, and future capital allocation priorities and our expected free cash flow for 2024; and our expectations of NCR Atleos' ability to deliver increased value to customers and stockholders.

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 the Company's control, including the failure of NCR Atleos to achieve some or all of the expected strategic benefits or opportunities expected from the spin-off, that NCR Atleos may incur material costs and expenses as a result of the spin-off, that NCR Atleos has no pre-spin operating history as an independent, publicly traded company, and NCR Atleos' historical and pro forma financial information is not necessarily representative of the results that it would have achieved as a separate, publicly traded company and therefore may not be a reliable indicator of its future results, NCR Atleos' obligation to indemnify NCR Voyix pursuant to the agreements entered into connection with the spin-off (including with respect to material taxes) and the risk NCR Voyix may not fulfill any obligations to indemnify NCR Atleos under such agreements, that under applicable tax law, NCR Atleos may be liable for certain tax liabilities of NCR Voyix following the spin-off if NCR Voyix were to fail to pay such taxes, that agreements binding on NCR Atleos restrict it from taking certain actions after the distribution that could adversely impact the intended U.S. federal income tax treatment of the distribution and related transactions, potential liabilities arising out of state and federal fraudulent conveyance laws, the fact that NCR Atleos may receive worse commercial terms from third-parties for services it presently receives from NCR Voyix, that after the spin-off, certain of NCR Atleos' executive officers and directors may have actual or potential conflicts of interest because of their previous positions at NCR Voyix, potential difficulties in maintaining relationships with key personnel, NCR Atleos will not be able to rely on the earnings, assets or cash flow of NCR Voyix and NCR Voyix will not provide funds to finance NCR Atleos' working capital or other cash requirements. 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. As you read and consider this presentation, you should understand that these statements are not guarantees of performance or results. Although the Company believes that assumptions underlying the forward-looking statements contained herein are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, any of these statements included herein may prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. Additional information concerning these and other factors can be found in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including the Company's registration statement on Form 10 and amendments thereto, the final information statement, included as an exhibit to the Company's current report on Form 8-K filed with the SEC on August 15, 2023, the Company's annual report on Form 10-K filed with the SEC on March 26, 2024, quarterly reports on Form 10-Q and current reports on Form 8-K. These materials are dated May 13, 2024, and Atleos 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, except as required by law.

2

NOTES TO INVESTORS

NON-GAAPMEASURES. While Atleos reports its results in accordance with generally accepted accounting principles in the United States, or GAAP, comments made during this conference call and in these materials will include or make reference to certain "non-GAAP" measures, including: adjusted gross margin rate (non-GAAP); diluted earnings per share (non-GAAP); adjusted free cash flow-unrestricted; adjusted gross margin (non- GAAP); net debt; adjusted EBITDA; adjusted EBITDA growth; adjusted EBITDA margin; the ratio of net debt to adjusted EBITDA or Net Leverage Ratio; adjusted income from operations (non-GAAP); adjusted interest and other expense (non-GAAP); adjusted income tax expense (non-GAAP); effective income tax rate (non-GAAP); and adjusted net income attributable to Atleos (non-GAAP). These measures are included to provide additional useful information regarding Atleos' 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 Atleos' website at www.ncratleos.com. Descriptions of many of these non-GAAP measures are also included in Atleos' SEC reports.

TRADEMARKS. All trademarks, service marks and trade names appearing in this presentation are, to our knowledge, the property of their respective owners. We do not intend our use or display of other companies' trademarks, service marks, copyrights or trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

USE OF CERTAIN TERMS. As used in these materials:

1. the term "recurring revenue" includes all revenue streams from contracts where there is a predictable revenue pattern that will occur at regular intervals with a relatively high degree of certainty. This includes hardware and software maintenance revenue, processing revenue, interchange and network revenue, Bitcoin-related revenue, and certain professional services arrangements, as well as term-based software license arrangements that include customer termination rights.
2. the term "annual recurring revenue" or "ARR" is recurring revenue, excluding software license sold as a subscription, for the last three months times four, plus the rolling four quarters for term-based software license arrangements that include customer termination rights.
3. the term "LTM" means last twelve months.
4. the term "ARPU" means average revenue per unit.
5. the term "ATMaaS" means ATM as a Service, our turnkey, end-to-end ATM platform solution.

These presentation materials and the associated remarks made during this conference call are integrally related and are intended to be presented 3 and understood together. Websites referenced in this presentation are not incorporated by reference into the presentation.

Business

Update

Tim Oliver

President and Chief Executive Officer

4

Strong Performance and Momentum

Strong Q1

Q1 financial results at or above the high-end of guidance ranges

Revenue up 6%; recurring revenue up 7% and 73% of total revenue

Solid top line trends in Self Service Banking and Network; positive developments with customers and partners

Adjusted EBITDA grew 11% y/y; free-cash-flow of ~$69 million was above expectations

Great Start to 2024

Q2 guidance implies sequential top line and profit growth

Network Utility banking continues to gain momentum with key renewals and new business

Strategic and operating initiatives are underway with positive early indications

Completed filing of Form 10-K, establishing sound base for future financial reporting

On Track for a

Successful 2024

Banks are investing in branches and better consumer experiences, and seeking efficiency

Sales funnel is developing well in all markets, reinforcing our key strategy pillars led by ATMaaS

Continuous improvement on track to deliver targeted productivity savings

Reaffirmed 2024 financial targets

5

Segment Highlights

Self-Service Banking

• Recurring revenue grew 7% and accounted for 62% of segment revenue
• Active ATMaaS unit count increased to ~21K; backlog up sequentially and included expansion to Hong Kong
• Traditional business model fundamentals remain strong; the Atleos value proposition continues to win in the market
• Emphasis on execution drove improved service levels and cost savings

Network

• Transaction growth, more profitable mix, and significant operating leverage drive double digit profit growth
• Top line trends were positive in most markets led by ASDA in the UK and double-digit growth in Allpoint surcharge free withdrawals in the U.S.
• Renewed 3 financial institution partners to the Allpoint network, including expanded services
• Renewed key retail partner relationships & added new partnerships

7-ELEVEN CANADA INC.

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Key Objectives for 2024

2024 Objectives		2024 Initiatives		Q1 2024 Progress Update
					 Grew ATMaaS active units to ~21K with the
			■ Offer best-in-class solutions and service		backlog and pipeline up sequentially
			 Launched Tap capability across the US retail
		Differentiate	■	Leverage existing operations
			network increasing transaction speed,
		& Grow	■	Expand markets and transaction sets		convenience and security
			■	Advance ATMaaS model	 In US, added a top 10 bank & Navy Federal;
						launched first deposit solution in UK
			■ Establish a culture of continuous
				improvement		Reorganization of customer service and
		Optimize
		■	Identify and realize efficiency		business operations is underway
		Resource		opportunities
		■	Apply disciplined approach to		Launched 6 productivity initiatives that
		Allocation
			investment		contributed 14% of expected annual
			■ Allocate capital to enhance shareholder		productivity savings
				value
		Complete	■ Complete the transfer of operations in		Transferred 4 stranded markets from Voyix to
			certain markets that remained after
				date; 3 left and expected to transfer by Q3
		Separation		transaction close	 60% of total TSA's have been wound down
			■ Wind down TSA agreements	7

Financial Review

Paul Campbell

Chief Financial Officer

8

Q1 2024 CONSOLIDATED FINANCIAL RESULTS

$ in millions, except percentages and per share amounts

• First Quarter Non-GAAP Diluted EPS of $0.41
  Total Revenue/Recurring

Adjusted EBITDA

$1,000

$986

$1,050

$200

$146

$162

$710 $763

$500

$0

Q1 23

Q1 24

$100

$0

Q1 23

Q1 24

■	Q1	'24 Revenue of $1,050M, +6% y/y	■ Q1 '24 Adjusted EBITDA of $162M, +11% y/y
■	Q1	'24 Recurring Revenue of $763M, +7% y/y	■	Adjusted EBITDA margin 15.4%, +60 bps y/y
			■	$69M of Adjusted free cash flow	9

SELF-SERVICE BANKING

$ in millions, except units and percentages

Revenue

Adjusted EBITDA

$650

$628

$150 $139 $134

$606

$575

$500

Q1 23

Q1 24

$75

$0

Q1 23 Q1 24

Recurring Revenue Mix %

65%62%

60%

60%58%

55%

Q1 Q2 Q3 Q4 Q1

23 23 23 23 24 Up 200 bps y/y

• Growth in Software and Services
• ATMaaS gaining traction

Key Strategic Metrics

ATMaaS Units (in thousands)

25

				20.4	20.8
20	17.5
15	Q1	Q2	Q3	Q4	Q1
	23	23	23	23	24

Up 19% y/y

• Q1 ATMaaS activations in most regions
• ATMaaS backlog up to 4,000+ units

ARR

$1,600					$1,573
$1,500	$1,450			$1,532
$1,400	Q1	Q2	Q3	Q4	Q1
	23	23	23	23	24

Up 8% y/y

• Growth in Software and Services

10