NCR

NCR Corporation is a developer of omnichannel software and hardware payment solutions. A large portfolio of solutions enables NCR to service more than 700 million transactions each day for the financial sector, retail companies, hospitality industry, as well as telecommunications industry.

• NCR is headquartered in Duluth, Georgia, United States.
• The total number of employees of the corporation working in more than 180 countries of the world exceeds 30 thousand people (data from the beginning of 2018).

Business in Russia

2022

NCR calculated the effect of curtailing business in Russia

The American manufacturer of equipment for conducting financial transactions NCR estimated how much revenue it will receive in 2022 due to the situation in Ukraine. For the entire year, lost revenue in the markets of Russia and Ukraine is estimated at $90 million (about 5.5 billion rubles at the Moscow Exchange exchange rate as of May 11) and $15 million for the 1st quarter. This was announced by NCR financial director Tim Oliver during a conference call with top managers of the company and analysts on the quarterly results of^[1].

In addition, the company expects an additional direct effect of $10 million in other parts of Eastern Europe, as an echo of the conflict.

In 2021, 162 employees worked in the Russian office of NCR "(photo - Sky Design)"

Against the background of a special operation in Ukraine, the company in March stopped all its operations in Russia, and in April announced a gradual curtailment of business in the country. In the 1st quarter, as follows from the conference call, NCR wrote off all its receivables and partially wrote off the property, as well as paid severance pay to its Russian employees and provided assistance in the relocation of Ukrainian employees.

According to the database of legal entities Kontur.Fokus, "in 2021 in the Russian office of NCR -" En. Xi. Ar. " - 162 employees worked.

According to the same source, the amount of 3.9 billion rubles as revenue passed directly through the Russian legal entity NCR in 2021, an increase of 29%. However, for the fifth year in a row, the Russian office of NCR ended the year with a loss of about 120.6 million rubles.

During a conference call on the results of the 1st quarter of 2022, Tim Oliver mentioned that significant segments of NCR's business in Russia are related to banking self-service devices and retail devices. This repeats the trend of NCR's global business.

Along with NCR, Diebold Nixdorf, a manufacturer of equipment for transactions, also reported on the curtailment of business in Russia amid the situation in Ukraine and sanctions. The ATM fleet is 60% represented by decisions of foreign companies from Russian financial organizations. Due to the departure of manufacturers, the latter have already begun to face some difficulties. So, at the end of April, the Association of Russian Banks appealed to the Central Bank with a request to postpone the issuance of new banknotes. This is due precisely to the fact that large Western manufacturers of ATMs and cash registers (Diebold Nixdorf and NCR) have suspended work with Russian customers, including device maintenance.

NCR warned partners about the suspension of equipment sales in Russia

The American company NCR sent a letter to Russian partners (the TAdviser edition has it), in which it said that sales of solutions in Russia were temporarily suspended. At the same time, the company promised that it would continue to fulfill its contractual obligations to support the business.

Official NCR Letter

Earlier, on March 8, 2022, a message was published on the global NCR website, in connection with the situation in Ukraine, the sale of all products in Russia was suspended. According to the company, NCR revenue in Russia and Ukraine combined is about 1% of the total business revenue.

According to the service Kontur. Focus, in 2020, the revenue of the Russian division of the company was 2.99 billion rubles. This is 31.5% less than in 2019 and almost 45% less than in 2018, when it was 4.36 billion rubles and 5.43 billion rubles, respectively. At the same time, since 2017, the company has shown losses in the statements: the net profit indicator is negative. During the same period, the number of employees decreased from 196 in 2017 to 166 in 2020.

The company supplies to the Russian market ATMs, self-service cash registers for retail, POS terminals, barcode scanners, scale scanner, price check scanners, specialized printers and other peripherals. The company cooperates with the largest Russian banks and retail chains. NCR clients include Sberbank, Alfa-Bank, Rosselkhozbank, Russian Standard Bank, Gazprombank, X5 Group, Magnit, etc.

According to a source in the banking sector, NCR's reputation in Russia was negatively affected by the 2019 incident, when the banknotes of the company's ATMs were unable to distinguish real money from the banknotes of the joke bank. As the interlocutor noted, the problem was promptly eliminated, but the company's equipment was compromised. According to a representative of the banking sector, both banks and retail will not be difficult to replace NCR.

As TAdviser commented at X5 Group, the company has been systematically introducing innovative solutions of its own design into stores of its retail chains for several years.

In "Pyaterochki," "Crossroads" and "Chizhiki" throughout the country there are more than 13.5 thousand self-service cash desks created in the Kh5 innovation laboratory. NCR devices that were purchased earlier are presented in stores pointwise. They run on Kh5 software and are independent of external vendors, the X5 Group press service explained to TAdviser.

2019: Revenue decline by 19.6% to RUB 4.36 bn

At the end of 2019, NCR (En. Xi. Ar., "NCR A/O) took 36th place in the Ranking TAdviser: the 50 most profitable representative offices of foreign IT companies in Russia. The company's revenue in 2019 amounted to 4,363,549 thousand rubles, which is 19.6% lower than in 2018.

2018: Revenue - RUB 5.42 billion

NCR revenue ("En. Xi. Ar., "NCR A/O) in 2018 amounted to 5,427,633 thousand rubles.

History

2021: Purchase of crypto company LibertyX

In early August 2021, NCR announced the purchase of LibertyX. The financial component of the transaction was not disclosed. NCR said it made the acquisition in response to customer demand, namely cryptocurrency transactions, cross-border payments and cryptocurrency payments support itself. Read more here.

2019: Thousands of ATMs in Russia accept toy money due to outdated software

At the end of August 2019, it became known that thousands of ATMs throughout Russia accept toy money due to outdated software. Attacks were carried out only on NCR ATMs and only with validators (a device that recognizes banknotes) ABV, HBV and RBV. Read more here.

2016

Cash flow from operating activities - $894 million

• Cash flow from operating activities for the year amounted to $894 million, the balance of available funds in accounts amounted to $628 million compared to the forecast $425-475 million
• A $300 million share buyback is planned for 2017; since the beginning of the year, the volume of redemption amounted to approximately $70 million
• Forecast for 2017 announced; growth of reported revenues from 1% to 3% and from 5% to 7% excluding changes in exchange rates and withdrawal from IPS capital; GAAP diluted earnings per share growth of 42% to 49%; non-GAAP diluted earnings per share growth of 9% to 12%, excluding currency fluctuations; free cash conversion rate from 95% to 100%

According to the RBR report "Global Software for POS 2016," which was the first large-scale international study of the dynamically developing software market for POS. It presents an analysis of almost 1,000 projects implemented by vendors in different countries of the world, and indicates that in 2016 more than 6.6 million POS devices were installed in the world by retail and hotel and tourist services. According to the report, the leader of this segment is NCR with 18 percent market share.

NCR in Consulting

On August 26, 2016, NCR announced the launch of a suite of consulting services for the financial, retail and hospitality businesses. According to the company, this will strengthen its position in the market of consulting services in the field of omnichannel integration solutions, will complement strategic solutions.

NCR Ad, (2016)

Areas of consulting practices

• Transactional Processing for Digital and Payment Solutions^[2]
  • NCR will launch a new international consulting practice on intelligent transactional solutions and fraud prevention technologies. NCR solutions enable customers to manage complex transactions and authorization processes, achieve the required level of security and counteract fraud, and optimize payment solutions to support digital channels. New NCR solutions will support the update of self-service services based on Kalpana, the main technology solution for the ATM industry.

• Data Analysis for Digital Solutions
  • NCR omnichannel platforms are used to conduct 1.2 trillion consumer transactions per year in the financial, retail and hospitality sectors, including small businesses. NCR will expand data modeling and advanced analytics services to prevent fraudulent activity, helping its customers become competitive in the digital age.

• Transition to Omnichannel Integration Solutions
  • NCR will offer an expanded portfolio of integration services to transition customers to omnichannel development. Integration services will include NCR industry knowledge transfer, innovative solutions, program management expertise, solution architecture, integration testing, and implementation process.

NCR's cutting-edge technology solutions address the growing digital needs of our customers. The new services are a natural extension of the accumulated experience of professional consultants implementing advanced software and technological equipment for the development of our clients. Ruth Fornell, Senior Vice President, General Manager Software and Professional Services, Financial Services Division, NCR Corporation

Atlanta Innovation Lab

On August 24, 2016, NCR Corporation announced plans to open the Innovation Laboratory (NCR Innovation Lab), a research center that will specialize in cross-functional research, innovation and design thinking.

A team of NCR R&D specialists will work in the laboratory, they will have to develop omnichannel solutions to support NCR's leadership position in the digital economy.

The lab will operate at NCR's international headquarters, which has yet to open in Atlanta,. USA The research focus will be on a number of innovative technologies: mobile solutions,, big data cloud technologies,, Internet of Things machine learning and predictive analysis. NCR developments in these areas will help deliver innovative online trading solutions to companies from a wide variety of fields.

NCR is supposed to create APIs for the digital business, creating opportunities for additional income in the open economy.

NCR's Innovation Lab will accelerate our transition to a platform-based business model. We live in an incredible time when developers and customers from completely different areas together set new technological trends, which significantly affects the methodology of our research, development and way of thinking, and subsequently reflects on our products. Omnichannel technologies have evolved significantly. Now they are strategic, secure solutions with opportunities for all industries, any geographical point, for all types of customers. NCR plays a significant role in shaping the technology industry and empowering the digital business for its customers. Eli Rosner, Chief Technology Officer and Vice President, Software Solutions, NCR

The NCR Innovation Lab plans to develop collaborations with scientists and students from Georgia State University of Technology, the developer community at Georgia State and beyond, and a range of innovation-related companies and startups.

NCR To Open R&D Centre In Hyderabad

On 19 August 2016, NCR Corporation announced plans to open a research and development centre at Raheja Mindspace Industrial Park in Hyderabad, India in 2017.

According to the company, the laboratory will become one of several international centers for the development of NCR technical solutions, through which the company is trying to maintain its position in the development of omnichannel products.

NCR Hyderabad Presentation, (2014)

Today's global economy is becoming increasingly interconnected. We are living in an interesting time marked by transformations leading to a massive democratization of the global economy, and this requires new approaches to how we conduct research, innovate and address the challenges of our customers. The new centre in Hyderabad will be an important link in our work to build innovative omnichannel infrastructure. Eli Rosner, Senior Vice President and Chief information officer, Software Solutions, NCR Corporation

Hyderabad R&D Centre will be one of the largest R&D centres in NCR portfolio and will perform significant functions in developing innovative solutions for global markets. As of August 18, 2016, the center is developing and supporting software and services that expand consumer opportunities through self-service services - Interactive Teller ATM, contactless EMV ATMs for receiving cash, mobile cash cashing, mobile check deposits, EVM with support for multi-industry payment systems, retail self-service cash desks, CRM platforms, management systems solutions for cinemas and stadiums.

Multichannel sales quickly became omnichannel because the business seeks to offer flawlessly executed transactions to meet the expectations of tech-savvy consumers. Our new hub will continue to invest in workforce development to create a seamless process of developing innovations that can change the way consumers communicate, interact and conduct financial transactions with businesses. Ashok Nallam, Head of NCR Research and Development Centre in India

As of August 2016, the Hyderabad R&D center team has more than 800 specialists in software development for the financial, trading and hospitality industries, 125 consultants of technical support for the company's customers.

2013

Q1: 13% revenue growth

According to the report for the first quarter of 2013 (ended March 31), the company's revenue amounted to $1.41 billion, which is 13% more than in the first quarter of 2012. Revenues for the first quarter are given taking into account a 2% decline due to an unfavorable exchange rate.

NCR announced that current income was $62 million in the first quarter of 2013, while losses of $10 million were recorded in the same period in 2012. Excluding pension and other special expenses, non-GAAP current income in the first quarter of 2013 was $129 million. US, while in the same period of the previous year it amounted to $101 million.

"The results of the first quarter of 2013 showed excellent dynamics, and we forecast an increase in profit this year," said Bill Nuti, Chairman of the Board and CEO of NCR. - We have good indicators in all areas of activity, determined primarily by the dynamic growth of divisions offering solutions for retail, hotel and restaurant businesses. During this quarter, we completed our acquisition of Retalix, thereby strengthening our position in retail software and services. We continue to develop our advanced retail solutions and innovative technologies, such as the NCR Silver mobile app and small business solution, and integrate technology across all platforms. In addition, profits from the sale of software are growing - compared with the previous year, it grew by 35%. All of these factors, along with a leading position in the financial self-service sector, a desire to conduct business efficiently and continuously, enable our company to achieve impressive results and make our products the best choice for our customers. "

Purchase of Israeli company Retalix

In March 2013, NCR Corporation announced the completion of the acquisition of the Israeli company Retalix, which was announced on November 28, 2012.

NCR paid $30. U.S. per share of Retalix. Thus, the total amount of the transaction, not including the costs of conducting the transaction, amounted to about $650 million. UNITED STATES. Upon completion of the acquisition, Retalix became a wholly owned subsidiary of NCR.

2012: New Partner Program

NCR Corporation announced in the spring of 2012 the launch of a new global partner program as part of its accelerated growth strategy. The new program will cover all sectors of the market in which NCR operates for the first time on a global scale. NCR focuses on building a world-class global partner infrastructure by investing in partner development and developing a program that effectively complements the corporation's direct sales system. Investment in the NCR Interact program will help meet the demand for NCR-developed self-service and automated service systems in both developed and growing markets.

The new NCR Interact Global Partner Program gives each partner the opportunity to earn one of the following categories: NCR Authorized, Advanced Partner, and Premier Partner. The assignment of one of these categories depends on the level of knowledge in the main area of ​ ​ activity, the provision of sales and information technology employees, the completion of training and the availability of certificates for technological specialization and infrastructure investments, which may include the availability of equipment and premises for testing, training, certification and demonstration. In turn, resellers participating in the program will have access to the full range of solutions and channel programs for partners. This will help them become more visible and meaningful to their customers.

The program will be implemented over the next 18 months: during this time - as the program is deployed globally - partners will be authorized by region and specialty areas. NCR sees significant business opportunities not only in developed, but also in new, rapidly growing markets such as Brazil, India, China, countries in the Middle East and Africa. Self-service systems and automated NCR service systems provide the growing middle class in these countries with access to banking and retail services as a driver of economic change.

1998

The first NCR self-service checkout was installed in a store in Kansas, USA in 1998. Self-service checkouts were a real breakthrough for speeding up the processing of small and medium-sized shopping baskets in retail.

Notes