NCR Announces Strong Fourth Quarter Results

  NCR Announces Strong Fourth Quarter Results

  *Operational results ahead of expectations
  *Order growth of 15% compared to prior-year period; year-end backlog up 11%
    versus prior year-end
  *Revenue growth of 3% on top of 17% increase in the prior-year period
  *GAAP diluted EPS from continuing operations of $(0.14), includes one-time
    pension charge of $119 million in Q4 2012, compared to $0.37 in the prior
    year period; non-GAAP diluted EPS from continuing operations^(2) of $0.72
    compared to $0.66 in the prior-year period
  *Year-end pension under-funded position improved by approximately $880
    million versus prior year-end, including $100 million discretionary
    contribution in Q4 2012
  *Strong free cash flow^(3); operating cash flow of $100 million and
    adjusted free cash flow^(3) of $122 million
  *2013 full-year guidance:

       *Revenue growth of 9% to 11% on a constant currency basis^(4)
       *GAAP income from operations of $548 million to $563 million, an
         increase of 136% to 143%
       *Non-pension operating income (NPOI)^(2) of $695 million to $710
         million, an increase of 18% to 21%
       *GAAP diluted EPS from continuing operations of $2.06 to $2.16, an
         increase of 142% to 154%
       *Non-GAAP diluted EPS from continuing operations^(2) of $2.65 to
         $2.75, an increase of 6% to 10%

Business Wire

DULUTH, Ga. -- February 7, 2013

NCR Corporation (NYSE: NCR) reported financial results today for the three
months ended December31, 2012. Reported revenue of $1.64 billion increased 3%
from the fourth quarter of 2011. Fourth quarter revenue was not materially
impacted by foreign currency translation.

NCR reported fourth quarter loss from continuing operations (attributable to
NCR) of $23 million, or $(0.14) per diluted share, compared to income from
continuing operations (attributable to NCR) of $59 million, or $0.37 per
diluted share, in the fourth quarter of 2011. Excluding pension and special
items, non-GAAP income from continuing operations^(2) in the fourth quarter of
2012 was $181 million, or $0.72 per diluted share, compared to $173 million,
or $0.66 per diluted share, in the prior-year period. An identification of
those special items, and the impact of pension and those special items on
income from continuing operations and diluted earnings per share, are set
forth in the supplemental non-GAAP reconciliation tables and accompanying
footnotes that are included following the "Note to Investors" at the end of
this earnings release.

“NCR delivered outstanding results in 2012, driven by good business execution,
consistent innovation, and successful expansion in new business verticals
including hospitality and emerging industries," said Bill Nuti, Chairman and
CEO of NCR. “We continued to steadily advance the contribution of software and
services to our revenue mix, which drove gross margin expansion and higher
profitability, while continued focus on efficiencies and costs further
improved our operating performance. Looking to 2013, we anticipate more
balanced revenue growth across our core Financial, Hospitality and Retail
verticals, with Retail in particular expected to benefit from improving demand
for self-service solutions as well as our move to strengthen our solutions
portfolio through the acquisition of Retalix Ltd. Across all of our
businesses, our focus remains centered on enabling our customers to drive
revenues, secure operational efficiencies and build consumer loyalty through
advanced hardware-enabled, software-driven technologies and solutions
supported by a leading global services organization.”

              Fourth Quarter 2012 Operating Segment Results^(2)

As of January 1, 2012, the specialty retail business that was formerly part of
the Hospitality and Specialty Retail segment is now included in the Retail
Solutions segment, and the hospitality business that was formerly part of the
Retail Solutions segment is now included in the Hospitality segment. As a
result, the former Hospitality and Specialty Retail segment has been renamed
Hospitality.

                              Financial Services

NCR's Financial Services segment generated fourth quarter revenue of $912
million compared to $908 million in the fourth quarter of 2011. The increase
was driven primarily by growth in the Europe and Asia Middle East Africa
(AMEA) theaters offset by declines in the Americas theater. The fourth quarter
year-over-year revenue comparison was negatively impacted by 1% of foreign
currency translation.

Operating income for Financial Services was $98 million in the fourth quarter
of 2012 as compared to $108 million in the fourth quarter of 2011. The
decrease in operating income was driven by increased mix of revenues from
emerging markets and continued investment in services and research and
development.

                               Retail Solutions

The Retail Solutions segment generated revenue of $490 million in the fourth
quarter of 2012, an increase of 2% from the fourth quarter of 2011. The
increase resulted from growth in the Americas and Europe theaters offset by
the impact from the movement of specialty retail and hospitality accounts
between the Retail Solutions segment and the Hospitality segment, as described
above. The fourth quarter year-over-year revenue comparison was not materially
impacted by foreign currency translation.

Operating income for Retail Solutions was $44 million in the fourth quarter of
2012 as compared to $25 million in the fourth quarter of 2011. The increase
was driven by a favorable mix of revenue and the movement of accounts between
the Retail Solutions and Hospitality segments, as described above.

                                 Hospitality

The Hospitality segment generated revenue of $150 million in the fourth
quarter of 2012 compared to $105 million in the fourth quarter of 2011. The
increase was driven largely by growth in the Americas theater as well as the
impact from the movement of specialty retail and hospitality accounts between
the Retail Solutions segment and the Hospitality segment, as described above.
The fourth quarter year-over-year revenue comparison was not materially
impacted by foreign currency translation.

Operating income for Hospitality was $22 million in the fourth quarter of 2012
compared to $17 million in the fourth quarter of 2011. This increase was
primarily driven by higher revenue and the movement of accounts between the
Retail Solutions and Hospitality segments, as described above.

                             Emerging Industries

The Emerging Industries segment generated fourth quarter revenue of $90
million, a decrease of 16% from the fourth quarter of 2011. The decrease was
driven primarily by declines in the Americas and Europe theaters. The fourth
quarter year-over-year revenue comparison was not materially impacted by
foreign currency translation.

Operating income for Emerging Industries was $17 million in the fourth quarter
of 2012 as compared to $23 million in the fourth quarter of 2011. The decrease
in operating income was primarily due to the decline in revenue.

                   Fourth Quarter 2012 Business Highlights

In the fourth quarter of 2012, NCR continued the introduction and deployment
of its self-service solutions across its core and emerging industries while
also expanding its global services business. The following are NCR's fourth
quarter business highlights.

In the Financial Services segment, NCR remained at the forefront of bank
branch transformation by further deploying its market-leading Scalable Deposit
Module (SDM) and APTRA™ suite of converged banking solutions.

NCR announced a five-year agreement with ANZ, one of the top four banks in
Australia, to help transform its ATM network via the deployment of 800 NCR
SelfServ™ ATMs throughout its branch network, allowing 24-hour access to many
traditional teller services. The new SelfServ™ ATM fleet includes NCR's
Scalable Deposit Module (SDM) technology, which enables ATMs to accept, count
and process cash and checks simultaneously in one transaction and greatly
improves the consumer deposit experience. Under the agreement, ANZ also will
migrate its self-service software platform to NCR APTRA™ Activate, to enable
more non-cash, web-based services, and NCR's existing ATM maintenance
agreement will be extended for an additional five years.

Capitol Federal® Savings Bank, the operating unit of Capital Federal®
Financial, agreed to deploy 69 NCR SelfServ™ ATMs with SDM technology across
its ATM network. Capital Federal® will also install Solidcore Suite for
APTRA™, the only ATM software that is designed to proactively maintain the
integrity and availability of ATMs by protecting against insider attacks and
preventing the introduction of unauthorized code on the network.

NCR continued to advance the acceptance of its APTRA™ Interactive teller, a
new video-based interactive technology that allows customers to conduct
transactions and receive banking services with a live, centrally-based teller
who has complete control of the Interactive Teller machine. Salin Bank & Trust
Company is set to begin the largest installation to date of APTRA™ Interactive
Teller, while Wright-Patt Credit Union agreed to deploy 19 APTRA™ Interactive
Teller ATMs across its network. LowellBank, a financial institution located in
Lowell, Massachusetts, is installing APTRA™ Interactive Teller at remote sites
throughout its surrounding region in order to provide its customers with
greatly expanded access to teller services.

NCR's recent acquisition of uGenius Technology, a pioneer in video banking
software, should further aid the growth of the APTRA™ Interactive Teller
solution, and the acquisition offers opportunities for NCR to leverage other
uGenius technologies to expand the delivery of video banking to multi-channel
solutions across its industry verticals.

SunTrust Banks, Anheuser-Busch Employees' Credit Union, and American Eagle
Credit Union are all committed to deploy NCR's APTRA™ Passport software. The
solution serves as a single remote deposit capture (RDC) hub, allowing
financial institutions to capture and consolidate business and consumer check
deposits made from branches, ATMs, businesses, homes and mobile phones
directly into back-office processing. APTRA™ Passport is designed to meet the
growing demand for RDC and offers incremental benefits such as unified fraud
detection, auditing and reporting through an integrated RDC hub.

Also in Financial Services, Vantiv recently certified NCR's APTRA™ multivendor
ATM software, which should help financial institutions of all sizes achieve
the benefits of a single software platform. Vantiv is a leading provider of
payment processing services and related technology solutions whose network
drives more than 12,000 ATMs for financial institutions across the U.S.

In Retail Solutions, NCR announced the acquisition of Retalix Ltd., a leading
global provider of innovative retail software and services. Retalix's
technologies are deployed in over 70,000 retail locations, with more than
400,000 customer touch points in over 50 countries, that transact billions of
dollars in annual retail sales across its platform. The acquisition is
consistent with NCR's continued transformation to a hardware-enabled,
software-driven business model. Retalix's strength with blue-chip retailers is
highly complementary and provides additional sales opportunities across the
combined installed base.

NCR is expanding our SelfServ Checkout business around the globe, which
includes newlarge- scalecommitted deployments scheduled for 2013. NCR also
provides its customers with expertise from our Human Factors Engineering group
to make the self-checkout experience easy and convenient for consumers through
user interface design, configurations, layouts and best practices.

During the fourth quarter, NCR introduced a variety of new technologies and
solutions designed to transform the independent retail and convenience store
experience. NCR Retail Online™ enables independent retailers and small chains
to build online stores to compete with major retail chains and online-only
retailers and provides the omni-channel online shopping experience that
customers demand. In the convenience store category, NCR is focused on helping
retailers reinvent the in-store experience through a number of new products
including NCR ConvenienceGo™ (C-Go), a mobile payment application that allows
shoppers to purchase fuel, food and other items through their smartphones and
Pulse mobile, an application that delivers actionable, real-time operational
information to store owners including fuel operations and other key systems.

In the Hospitality vertical, NCR recently launched several new advanced
hospitality solutions including itsP1230 and P1530POS terminals that deliver
more processing power, higher reliability and ease-of-use in an
energy-efficient and award-winning design. The new 30 series is available in
multiple screen sizes and offers flexible mounting options and a small
footprint that fits the unique needs of hospitality operations. NCR also
introduced NCR Mobile Pay, a new solutions that enables restaurant patrons
with a smartphone to browse their bill, re-order menu items and alert their
servers. NCR Mobile Pay is designed for restaurants that use NCR Aloha POS
technology, enabling cloud-based credit card processing on mobile devices. In
the theater category, NCR launchedNCR Movie Time, a new smartphone
application that enables consumers to browse schedules, buy tickets and
concessions, check loyalty profiles and conduct other theater-related mobile
activities. NCR Movie Time can be utilized specifically for individual cinemas
brands, enabling theater operators to maximize valuable marketing
opportunities and build consumer loyalty.

In addition, NCR secured multiple deployments of its venue management
platform.NCR Venue Managerprovides operators with real-time sales
information from all of its point-of-sale (POS) devices and retail outlets,
enabling staff to plan, manage and run events more effectively, increase
customer satisfaction and enhance operational visibility. NCR is implementing
this solution atHunter Stadium, Newcastle, following an agreement
withGemaGroup. NCR Venue Manager will provide the 33,000-capacity Newcastle
Stadium with real-time sales and stock information from each of the 90 NCR POS
terminals located throughout the venue's food and beverage outlets.

NCR also reached an agreement with VenuesWest, a Western Australia-based
provider of premier sports, recreation and entertainment venues, to implement
its venue management solution atPerth Arena. NCR's solution was chosen for
its ability to streamline operations, increase speed of service and help
deliver a world-class entertainment experience. The partnership includes the
installation of 65 NCR touchscreenPOS terminals installed through Perth
Arena's general concession locations and VIP zones to ensure fast sales
transactions. In addition,The University of Wisconsin-Madisonis installing
NCR Venue Manager at four of its athletic facilities to drive revenues and
increase the efficiency of its concessions and suite catering operations.

NCR has also further deployed its loaded ticket solution. The innovative
system will allow fans to preload their match tickets or memberships cards
with a monetary value that can be quickly and effectively redeemed for
merchandise, food and beverages at service outlets throughout the stadium.
SuncorpStadium, the premier sports and outdoor concert venue in Queensland,
Australia, has deployed NCR's loaded ticket solution in its 52,500-seat
stadium while MetricomStadiumhas rolled out the system at its
27,500-capacity stadium in Gold Coast, Australia.

In Emerging Industries, NCR continued to advance its self-service technologies
across its key verticals. In the Telecom & Technology vertical, in the fourth
quarter NCR launched Managed IT Domain Services, an innovative managed service
for telecom carriers and technology manufacturers (OEMs) that enables support
for remote monitoring and management of enterprise customers' IT domains
through cloud-based IT infrastructures. The total service supports
applications, cloud, network/WAN, security, storage and virtualization with
more than 3,000 products from many leading networking and IT vendors that can
be managed.

During the fourth quarter, NCR's global services business continued to expand
its global footprint. NCR signed a three-year agreement with SoloHealth to
provide on-site repair services for thousands of high-tech, self-service
consumer healthcare kiosks set to be installed at retailers nationwide during
the first-half of 2013. NCR Services also continued to receive noteworthy
third-party recognition. NCR was ranked the global market share leader in
retail industry product support for 2011 based on product support revenue by
Gartner (Source: Gartner Market Share Analysis: IT Services, Worldwide, 2011,
April 26, 2012).

                   Fourth Quarter 2012 Financial Highlights

Loss from operations was $7 million in the fourth quarter of 2012, which
included $164 million of pension expense, $11 million of acquisition-related
costs, $9 million of acquisition-related amortization of intangibles and $4
million of legal costs related to the previously-disclosed OFAC and FCPA
investigations. The pension expense of $164 million included a one-time
settlement charge of $119 million related to the voluntary lump sum payment
offered to certain participants in the Company's U.S. qualified pension plan.
This compares to $102 million of income from operations in the fourth quarter
of 2011, which included $56 million of pension expense, $6 million of
acquisition-related costs and $9 million of acquisition-related amortization
of intangible assets. Excluding these items, non-GAAP income from
operations^(2) was $181 million in the fourth quarter of 2012 compared to $173
million in the fourth quarter of 2011.

Net cash provided by operating activities was $100 million during the fourth
quarter of 2012 compared to net cash provided by operating activities of $274
million in the prior-year period. Net capital expenditures of $49 million in
the fourth quarter of 2012 increased from $35 million in the fourth quarter of
2011. Free cash flow (net cash from operations and discontinued operations,
less capital expenditures for property, plant and equipment, and additions to
capitalized software)^(3) was $22 million in the fourth quarter of 2012,
compared to $229 million in the fourth quarter of 2011. Both cash provided by
operating activities and free cash flow generated in the fourth quarter of
2012 were negatively impacted by a $100 million discretionary contribution to
the U.S. qualified pension plan. Excluding the discretionary contribution,
free cash flow was $122 million in the fourth quarter of 2012 compared to free
cash flow of $229 million in the fourth quarter of 2011. The decrease was
primarily driven by the timing of working capital improvements.

Discontinued operations from operating activities resulted in $29 million of
cash outflow in the fourth quarter of 2012 compared to $10 million of cash
outflow in the fourth quarter of 2011. The change was primarily driven by
increased remediation payments related to the Fox River environmental matter.

NCR contributed approximately $752 million to its international, executive and
U.S. qualified pension plans in 2012 compared to $125 million in 2011.
Contributions in 2012 included $500 million and $100 million discretionary
contributions to the U.S. qualified pension plan in the third and fourth
quarters of 2012, respectively. The net funded status of the Company's global
pension plans improved by approximately $880 million and was approximately
$(440) million as of December 31, 2012 compared to approximately $(1.32)
billion as of December 31, 2011.

Other expense, net was $19 million in the fourth quarter of 2012, an increase
of $3 million from the prior year period.

Income tax was a benefit of $1 million in the fourth quarter of 2012 compared
to expense of $30 million in the fourth quarter of 2011 primarily driven by
the reduction in income from operations.

NCR ended the fourth quarter of 2012 with $1.07 billion in cash and cash
equivalents compared to a balance of $581 million at September30, 2012. As of
December31, 2012, NCR had a total debt balance of $1.96 billion compared to
$1.46 billion at September30, 2012. Both increases were driven by the
offering of $500 million aggregate principal amount of 4.625% senior notes due
2021 during the fourth quarter of 2012.

                                 2013 Outlook

NCR expects full-year 2013 revenues to increase in the range of 9% to 11% on a
constant currency basis^(4) compared with 2012.

NCR expects its full-year 2013 Income from Operations (GAAP) to be $548
million to $563 million, non-pension operating income (NPOI)^(2) to be in the
range of $695 to $710 million, GAAP diluted earnings per share to be $2.06 to
$2.16 and non-GAAP diluted earnings per share^(2) to be in the range of $2.65
to $2.75 per diluted share.  The 2013 NPOI and non-GAAP diluted EPS guidance
excludes the items set forth in the supplemental non-GAAP reconciliation
tables and accompanying footnotes that are included following the "Notes to
Investors" at the end of this earnings release. NCR expects approximately $100
million of Other Expense, net including interest expense in 2013 and its
full-year 2013 effective income tax rate to be approximately 26%.

The Company expects first quarter 2013 NPOI^(2) to be in the range of $110
million to $115 million, compared to $101 million in the first quarter of
2012, and first quarter 2013 income from operations to be in the range of $76
million to $81 million, compared to $49 million in the first quarter of 2012.
We expect the first quarter of 2013 tax rate to be approximately 20% and Other
Expense, net including interest expense to be approximately $25 million.

                                                            
                                             2013             2012
                                            Guidance         Actual
Year-over-year revenue (constant             9% - 11%         11%
currency)^(4)
Income from Operations (GAAP)                $548 - $563      $232 million
                                               million
Non-pension operating income^(2)             $695 - $710      $589 million
                                               million
Diluted earnings per share (GAAP)            $2.06 - $2.16    $0.85
Diluted earnings per share excluding
pension expense and special items            $2.65 - $2.75    $2.49
(non-GAAP)^(1)
                                                                  

                Update regarding OFAC and FCPA Investigations

The Company and the Special Committee of the Company's Board of Directors have
each completed their respective internal investigations regarding the
anonymous allegations received from a purported whistleblower regarding
certain aspects of the Company's business practices in China, the Middle East
and Africa. The principal allegations relate to the Company's compliance with
the Foreign Corrupt Practices Act (“FCPA”) and federal regulations that
prohibit U.S. persons from engaging in certain activities in Syria.

With respect to Syria, last year NCR voluntarily notified the U.S. Treasury
Department, Office of Foreign Assets Control (“OFAC”) of potential violations
and ceased operations in Syria, which were commercially insignificant. The
notification related to confusion stemming from the Company's failure to
register in Syria the transfer of the Company's Syrian branch to a foreign
subsidiary and to deregister the Company's legacy Syrian branch, which was a
branch of NCR Corporation. Earlier this year, the Company received a wind down
license from OFAC that permits the Company to take measures required to wind
down its past operations in Syria. The Company has submitted a detailed report
to OFAC regarding this matter, including a description of the Company's
comprehensive export control program and related remedial measures.

The Company has made a presentation to the staff of the Securities and
Exchange Commission ("SEC") and the U.S. Department of Justice ("DOJ")
providing the facts known to the Company related to the whistleblower's FCPA
allegations, and advising the government that many of these allegations were
unsubstantiated. The Company's investigations of the whistleblower's FCPA
allegations identified a few opportunities to strengthen the Company's
comprehensive FCPA compliance program, and remediation measures were proposed
and are being implemented. As previously disclosed, the Company is responding
to a subpoena of the SEC and requests of the DOJ for documents and information
related to the FCPA, including matters related to the whistleblower's FCPA
allegations.

In addition, on January 23, 2013, upon the recommendation of the Special
Committee following its review, the Board of Directors adopted a resolution
rejecting the shareholder demand that the Company received by letter on August
31, 2012 related to the whistleblower's OFAC and FCPA allegations. As part of
its resolution, the Board determined, among other things, that the officers
and directors named in the demand had not breached their fiduciary duties and
that the Company will not commence litigation against the named officers and
directors. The Board further resolved to review measures proposed and
implemented by management to strengthen the Company's compliance with trade
embargos, export control laws and anti-bribery laws.

The Company is fully cooperating with the authorities with respect to all of
these matters.

                 2012 Fourth Quarter Earnings Conference Call

A conference call is scheduled today at 4:30 p.m. (EST) to discuss the
company's 2012 fourth quarter results and guidance for full-year 2013. Access
to the conference call, as well as a replay of the call, is available on NCR's
web site at http://investor.ncr.com/. NCR's web site (www.ncr.com) contains a
significant amount of information about NCR, including financial and other
information for investors (http://investor.ncr.com.). NCR encourages investors
to visit its web site from time to time, as information is updated and new
information is posted.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a global technology company leading how the
world connects, interacts and transacts with business. NCR's assisted- and
self-service solutions and comprehensive support services address the needs of
retail, financial, travel, hospitality, gaming and public sector, telecom
carrier and equipment organizations in more than 100 countries. NCR
(www.ncr.com) is headquartered in Duluth, Georgia.

NCR is a trademark of NCR Corporation in the U. S. and other countries.

Note to Investors - This news release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements use words such as “seek,” "potential,” “expect,”
“strive,” “continue,” “continuously,” “accelerate,” “anticipate,” “outlook,”
“intend,” “plan,” “target” and other similar expressions or future or
conditional verbs such as “will,” “should,” “would” and “could”. They include
statements as to NCR's anticipated or expected results and financial
performance, including its outlook for the first quarter of 2013 and the 2013
fiscal year (including in the section entitled "2013 Outlook") its
expectations for revenue growth across its core verticals; projections of
revenue, profit growth and other financial items; discussion of strategic
initiatives and related actions; comments about future market or industry
performance or behaviors, including how NCR's products and services may be
used and the benefits they might create or provide; expected benefits related
to the acquisition of Retalix Ltd., including its effect on the strength of
our solutions portfolio; and beliefs, expectations, intentions, and
strategies, among other things. Forward-looking statements are based on
management's current beliefs, expectations and assumptions, 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 factors, risks and uncertainties that could cause actual
outcomes and results to differ materially from the results contemplated by
such forward-looking statements. In addition to the factors discussed in this
release, these other factors, risks and uncertainties include those relating
to: domestic and global economic and credit conditions, including the ongoing
sovereign debt conditions in Europe, which could impact the ability of our
customers to make capital expenditures, purchase our products and pay accounts
receivable, drive further consolidation in the financial services sector and
reduce our customer base; other business and legal risks associated with
multinational operations; the financial covenants in our secured credit
facility and our indenture and their impact on our financial and business
operations; our indebtedness and the impact that it may have on our financial
and operating activities and our ability to incur additional debt; the
adequacy of our future cash flows to service our indebtedness; the variable
interest rates borne by our indebtedness and the effects of changes in those
rates; shifts in market demands, continued competitive factors and pricing
pressures and their impact on our ability to improve gross margins and
profitability, especially in our more mature offerings; manufacturing
disruptions affecting product quality or delivery times; the effect of
currency translation; our ability to achieve targeted cost reductions; short
product cycles, rapidly changing technologies and maintaining a competitive
leadership position with respect to our solution offerings; tax rates; ability
to execute our business and reengineering plans; turnover of workforce and the
ability to attract and retain skilled employees, especially in light of
continued cost-control measures being taken by the company; availability and
successful exploitation of new acquisition and alliance opportunities; our
ability to sell higher-margin software and services in addition to our
hardware; the timely development, production or acquisition and market
acceptance of new and existing products and services (such as self-service
technologies), including our ability to accelerate market acceptance of new
products and services; changes in Generally Accepted Accounting Principles
(GAAP) and the resulting impact, if any, on the company's accounting policies;
continued efforts to establish and maintain best-in-class internal information
technology and control systems; market volatility and the funded status of our
pension plans; the success of our pension strategy; compliance with
requirements relating to data privacy and protection; expected benefits
related to acquisitions and alliances, including the acquisition of Retalix,
Ltd., not materializing as expected; uncertainties with regard to regulations,
lawsuits, claims and other matters across various jurisdictions; and other
factors detailed from time to time in the company's U.S. Securities and
Exchange Commission reports and the Company's annual reports to stockholders.
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.

Reconciliation of Diluted Earnings Per Share from Continuing Operations
(attributable to NCR) (GAAP) to Non-GAAP Measures

                         Q4 2012     Q4 2011    2013            2012
                           Actual        Actual       Guidance          Actual
Diluted Earnings Per
Share from Continuing
Operations                 $ (0.14 )     $ 0.37       $2.06 - $2.16     $ 0.85
(attributable to NCR)
(GAAP)
Pension expense            0.77          0.23         0.07              1.33
Impairment charge and
related valuation          —             —            —                 0.05
allowance
Acquisition related        0.04          0.02         0.14              0.10
costs
Acquisition related
amortization of            0.04          0.04         0.32              0.15
intangibles
Acquisition related
purchase price             —             —            0.06              —
adjustment
OFAC and FCPA              0.01         —           —                0.01
investigations
Diluted Earnings Per
Share from Continuing
Operations                 $ 0.72        $ 0.66       $2.65 - $2.75     $ 2.49
(attributable to NCR)
(non-GAAP) ^ (2)
                                                                          

Reconciliation of Income from Operations (GAAP) to Non-GAAP Measure (in
millions)

                 Q4 2012  Q4 2011  2013       2012      Q1 2013    Q1
                                                                             2012
                   Actual    Actual    Guidance    Actual      Guidance    Actual
Income from                            $548 -                   $76 -
Operations         $ (7  )   $ 102     $563         $ 232       $81          $  49
(GAAP)
Pension            164       56        20           292         5            39
expense *
Acquisition        11        6         35           23          10           4
related costs
Acquisition
related            9         9         77           38          16           9
amortization
of intangibles
Acquisition
related            —         —         15           —           3            —
purchase price
adjustments
OFAC and FCPA      4        —        —           4          —           —
investigations
Non-pension
Operating                              $695 -                   $110 -
Income             $ 181     $ 173     $710         $ 589       $115         $  101
(non-GAAP) ^
(2)

* Given the Company is on track to change to mark-to-market accounting, the
2013 Guidance for pension expense is based on mark-to-market methodology
compared to our current methodology in 2012.


Free Cash Flow

                                For the Periods Ended December 31
                                  Three Months          Twelve Months
                                  2012      2011        2012       2011
Net cash provided by (used
in) operating activities          $ 100       $ 274       $ (180 )    $ 388
(GAAP)
Less capital expenditures
for:
Property, plant and equipment     (27   )     (18   )     (80    )     (61   )
Capitalized software              (22   )     (17   )     (80    )     (62   )
Total capital expenditures,       (49   )     (35   )     (160   )     (123  )
net
Net cash used in discontinued     (29   )     (10   )     (114   )     (77   )
operations *
Free cash flow (used)             22          229         (454   )     188
(non-GAAP)^(3)
Add discretionary pension         100        —          600         —     
contributions
Adjusted free cash flow           $ 122      $ 229      $ 146       $ 188 
(non-GAAP)^(3)
                                                                             

* For the three and twelve months ended December 31, 2012, net cash used in
discontinued operations excludes cash provided by investing activities from
discontinued operations of $1 million and $99 million, respectively.


Constant Currency

                                                       2012
                                                           Actual
    Revenue growth % (GAAP)                                8   %
    Unfavorable foreign currency fluctuation impact        3   %
    Constant currency revenue growth % (non-GAAP) ^(4)     11  %
                                                               

(1) While NCR reports its results in accordance with Generally Accepted
Accounting Principles in the United States, or GAAP, it believes that certain
non-GAAP measures provide additional useful information regarding NCR's
financial results. NCR's management evaluates the company's results excluding
certain items, such as pension expense and the effect of foreign currency
translation, to assess the financial performance of the company and believes
this information is useful for investors because it provides a more complete
understanding of NCR's underlying operational performance, as well as
consistency and comparability with NCR's past reports of financial results. In
addition, management uses certain of these measures to manage and determine
effectiveness of its business managers and as a basis for incentive
compensation. NCR management's calculation 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.

(2) The segment results included in this release and Schedule B hereto and the
non-GAAP income from operations (i.e. non-pension operating income) and
non-GAAP earnings per share discussed in this earnings release, exclude the
impact of pension expense and certain special items. Due to the significant
change in its pension expense from year to year and the non-operational nature
of pension expense and these special items, including amortization of
acquisition related intangibles, NCR's management uses non-pension operating
income and non-GAAP earnings per share to evaluate year-over-year operating
performance. NCR may, in addition, segregate special items from its GAAP
results from time to time to reflect the ongoing earnings per share
performance of the company. NCR also uses non-pension operating income and
non-GAAP earnings per share to manage and determine the effectiveness of its
business managers and as a basis for incentive compensation. NCR determines
non-pension operating income based on its GAAP income (loss) from operations
excluding pension expense and special items. These non-GAAP measures should
not be considered as substitutes for or superior to results determined in
accordance with GAAP.

(3) Free cash flow does not have a uniform definition under GAAP and,
therefore, NCR's definition may differ from other companies' definitions of
this measure. 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, and additions to
capitalized software. In this earnings release, NCR also uses the measure
'adjusted free cash flow," which NCR defines as its free cash flow net of
discretionary pension contributions. NCR's management uses measures of free
cash flow to assess the financial performance of the company and believes they
are 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, and, in the case of adjusted free cash
flow, after discretionary pension contributions, 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. These non-GAAP measures should not be considered as
substitutes for or superior to cash flows from operating activities determined
in accordance with GAAP.

(4) NCR’s results with respect to year-over-year revenue growth on a constant
currency basis exclude the effects of foreign currency translation. Due to the
variability of foreign exchange rates from year to year, NCR’s management uses
revenue on a constant currency basis to evaluate year-over-year operating
performance. Revenue growth on a constant currency basis is calculated by
translating prior year revenue at current year monthly average exchange rates.
Similarly, NCR's guidance with respect to year-over-year revenue growth on a
constant currency basis excludes the potential effects of foreign currency
translation due to the variability and unpredictability of future exchange
rates.



Schedule A

NCR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions, except per share amounts)
                      
                          For the Periods Ended December 31
                          Three Months               Twelve Months
                          2012         2011          2012        2011
Revenue
Products                  $ 866          $ 845         $ 2,854       $ 2,592
Services                  776           756          2,876        2,699   
Total Revenue             1,642          1,601         5,730         5,291
Cost of products          662            640           2,177         2,011
Cost of services          648           576          2,208        2,098   
Total gross margin        332            385           1,345         1,182
% of Revenue              20.2    %      24.0    %     23.5    %     22.3    %
Selling, general and
administrative            275            232           894           794
expenses
Research and              64            51           219          176     
development expenses
(Loss) income from        (7      )      102           232           212
operations
% of Revenue              (0.4    )%     6.4     %     4.0     %     4.0     %
Interest expense          (18     )      (9      )     (42     )     (13     )
Other (expense)           (1      )      (7      )     (8      )     (3      )
income, net
Total other (expense)     (19     )      (16     )     (50     )     (16     )
income, net
(Loss) income before
income taxes and          (26     )      86            182           196
discontinued
operations
% of Revenue              (1.6    )%     5.4     %     3.2     %     3.7     %
Income tax (benefit)      (1      )      30           42           51      
expense
(Loss) income from        (25     )      56            140           145
continuing operations
Income (loss) from
discontinued              3             (68     )     6            (93     )
operations, net of
tax
Net (loss) income         (22     )      (12     )     146           52
Net (loss) income
attributable to           (2      )      (3      )     —            (1      )
non-controlling
interests
Net (loss) income         $ (20   )      $ (9    )     $ 146        $ 53    
attributable to NCR
Amounts attributable
to NCR common
stockholders:
(Loss) income from        $ (23   )      $ 59          $ 140         $ 146
continuing operations
Income (loss) from
discontinued              3             (68     )     6            (93     )
operations, net of
tax
Net (loss) income         $ (20   )      $ (9    )     $ 146        $ 53    
Net (loss) income per
share attributable to
NCR common
stockholders:
Net (loss) income per
common share from
continuing operations
Basic                     $ (0.14 )      $ 0.37       $ 0.88       $ 0.92  
Diluted                   $ (0.14 )      $ 0.37       $ 0.85       $ 0.91  
Net (loss) income per
common share
Basic                     $ (0.12 )      $ (0.06 )     $ 0.92       $ 0.34  
Diluted                   $ (0.12 )      $ (0.06 )     $ 0.89       $ 0.33  
Weighted average
common shares
outstanding
Basic                     160.4          157.5         159.3         158.0
Diluted                 * 160.4          161.4         163.8         161.0

* Due to the net loss from continuing operations, potential common shares that
would cause dilution, such as stock options and restricted stock, have been
excluded from the diluted share count because their effect would have been
anti-dilutive. For the three months ended December31, 2012, fully diluted
shares would have been 164.4 million.



Schedule B

NCR CORPORATION
CONSOLIDATED REVENUE AND OPERATING INCOME SUMMARY
(Unaudited)
(in millions)
                  
                     For the Periods Ended December 31
                     Three Months                         Twelve Months
                                             %                                  %
                     2012          2011          Change     2012          2011          Change
Revenue by
segment
Financial            $ 912         $ 908         —          $ 3,180       $ 2,999       6   %
Services
Retail Solutions     490           481           2   %      1,667         1,778         (6  )%
Hospitality          150           105           43  %      522           141           270 %
Emerging             90           107          (16 )%     361          373          (3  )%
Industries
Total Revenue        $ 1,642      $ 1,601      3   %      $ 5,730      $ 5,291      8   %
Operating income
by segment
Financial            $ 98          $ 108                    $ 319         $ 313
Services
% of Revenue         10.7    %     11.9    %                10.0    %     10.4    %
Retail Solutions     44            25                       102           71
% of Revenue         9.0     %     5.2     %                6.1     %     4.0     %
Hospitality          22            17                       85            22
% of Revenue         14.7    %     16.2    %                16.3    %     15.6    %
Emerging             17            23                       83            77
Industries
% of Revenue         18.9    %     21.5    %                23.0    %     20.6    %
Subtotal-segment     $ 181        $ 173                   $ 589        $ 483   
operating income
% of Revenue         11.0    %     10.8    %                10.3    %     9.1     %
Pension Expense      164           56                       292           222
Other                24           15                      65           49      
adjustments (1)
Total income         $ (7    )     $ 102                   $ 232        $ 212   
from operations

      Other adjustments for the three months ended December 31, 2012 include
      $11 million of acquisition related costs, $9 million of acquisition
      related amortization of intangible assets and $4 million of legal costs
      incurred related to the OFAC and FCPA investigations and for the three
      months ended December 31, 2011 include $6 million of acquisition related
      costs and $9 million of acquisition related amortization of intangible
(1)  assets. Other adjustments for the twelve months ended December 30, 2012
      include $23 million of acquisition related costs, $38 million of
      acquisition related amortization of intangible assets and $4 million of
      legal costs incurred related to the OFAC and FCPA investigations and for
      the twelve months ended December 31, 2011 include $37 million of
      acquisition related costs and $12 million of acquisition related
      amortization of intangible assets.
      
      


Schedule C

NCR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)
                                                           
                               December 31,     September 30,     December 31,
                               2012             2012              2011
Assets
Current assets
Cash and cash equivalents      $  1,069         $   581           $  398
Accounts receivable, net       1,086            1,124             1,032
Inventories, net               797              826               774
Other current assets           386             425              311       
Total current assets           3,338           2,956            2,515     
Property, plant and            308              303               365
equipment, net
Goodwill                       1,003            966               913
Intangibles                    304              299               312
Prepaid pension cost           368              355               339
Deferred income taxes          602              717               714
Other assets                   448             438              433       
Total assets                   $  6,371        $   6,034        $  5,591  
Liabilities and
stockholders’ equity
Current liabilities
Short-term borrowings          $  72            $   54            $  1
Accounts payable               611              612               525
Payroll and benefits           197              193               221
liabilities
Deferred service revenue       455              477               418
and customer deposits
Other current liabilities      407             394              400       
Total current liabilities      1,742           1,730            1,565     
Long-term debt                 1,891            1,408             852
Pension and indemnity plan     812              1,194             1,662
liabilities
Postretirement and
postemployment benefits        246              255               256
liabilities
Income tax accruals            138              161               148
Environmental liabilities      171              188               220
Other liabilities              79              62               53        
Total liabilities              5,079           4,998            4,756     
Redeemable non-controlling     15               14                15
interests
Stockholders' equity
NCR stockholders' equity:
Preferred stock: par value
$0.01 per share, 100.0
shares authorized, no
shares issued and              —                —                 —
outstanding at December
31, 2012, September 30,
2012 and December 31,
2011, respectively
Common stock: par value
$0.01 per share, 500.0
shares authorized, 162.8,
159.8, and 157.6 shares
issued and outstanding at      2                2                 2
December, 31, 2012,
September 30, 2012 and
December 31, 2011
respectively
Paid-in capital                358              337               287
Retained earnings              2,134            2,154             1,988
Accumulated other              (1,247    )      (1,507     )      (1,492    )
comprehensive loss
Total NCR stockholders'        1,247            986               785
equity
Non-controlling interests      30              36               35        
in subsidiaries
Total stockholders' equity     1,277           1,022            820       
Total liabilities and          $  6,371        $   6,034        $  5,591  
stockholders' equity
                                                                            
                                                                            

Schedule D

NCR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
                           
                              For the Periods Ended December 31
                              Three Months            Twelve Months
                              2012        2011        2012        2011
Operating activities
Net (loss) income             $ (22   )     $ (12 )     $ 146         $  52
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Loss (income) from            (3      )     68          (6      )     93
discontinued operations
Depreciation and              43            40          166           128
amortization
Stock-based compensation      13            9           49            33
expense
Excess tax benefit from       —             —           —             (1     )
stock-based compensation
Deferred income taxes         (39     )     4           (37     )     (13    )
Gain on sale of property,     (2      )     (2    )     (10     )     (5     )
plant and equipment
Impairment of long-lived      —             —           7             —
and other assets
Changes in assets and
liabilities:
Receivables                   41            88          (53     )     (57    )
Inventories                   32            71          (42     )     4
Current payables and          33            (22   )     97            50
accrued expenses
Deferred service revenue      (25     )     —           31            34
and customer deposits
Pension and indemnity         11            (8    )     (478    )     92
plans
Other assets and              18           38         (50     )     (22    )
liabilities
Net cash provided by
(used in) operating           100          274        (180    )     388    
activities
Investing activities
Expenditures for
property, plant and           (27     )     (18   )     (80     )     (61    )
equipment
Proceeds from sales of
property, plant and           —             —           8             2
equipment
Additions to capitalized      (22     )     (17   )     (80     )     (62    )
software
Business acquisition, net     (50     )     2           (108    )     (1,085 )
Other investing               —            —          4            —      
activities, net
Net cash used in              (99     )     (33   )     (256    )     (1,206 )
investing activities
Financing activities
Purchase of Company           —             —           —             (70    )
common stock
Tax withholding payments      —             —           (12     )     —
on behalf of employees
Excess tax benefit from       —             —           —             1
stock-based compensation
Short term borrowings,        —             —           —             —
net
Borrowings on term credit     —             —           150           700
facility
Payments on revolving         —             (210  )     (860    )     (260   )
credit facility
Borrowings on revolving       —             —           720           400
credit facility
Proceeds from bond            500           —           1,100         —
offering
Debt issuance costs           (8      )     (1    )     (19     )     (29    )
Proceeds from employee        30            3           53            18
stock plans
Dividend distribution to      —             (1    )     (1      )     (1     )
minority shareholder
Proceeds from sale of         —            43         —            43     
non-controlling interest
Net cash provided by
(used in) financing           522          (166  )     1,131        802    
activities
Cash flows from
discontinued operations
Net cash used in              (29     )     (10   )     (114    )     (37    )
operating activities
Net cash provided by
(used in) investing           1            —          99           (40    )
activities
Net cash (used in)
provided by discontinued      (28     )     (10   )     (15     )     (77    )
operations
Effect of exchange rate
changes on cash and cash      (7      )     (8    )     (9      )     (5     )
equivalents
Increase (decrease) in        488           57          671           (98    )
cash and cash equivalents
Cash and cash equivalents     581          341        398          496    
at beginning of period
Cash and cash equivalents     $ 1,069      $ 398      $ 1,069      $  398 
at end of period

Contact:

News Media Contact
Lou Casale
NCR Corporation
212-589-8415
lou.casale@ncr.com
or
Investor Contact
Tracy Krumme
NCR Corporation
212-589-8569
tracy.krumme@ncr.com