NCR Confidential NCR Supplier Quality Webcast June Bob Ciminera - Vice President Strategic Sourcing Robert Mele - Vice President, Quality and Continuous Improvement

NCR Confidential 2 Agenda – Supplier Quality Webcast Introduction Supplier PPM, Trend Requirements/ Timeline Bob Ciminera / Robert Mele Wagih Wazni Robert Mele All SQDD Update/PPAP/FAI 350 PPM Action Plans Supplier Quality Training Michael Crutch NCR Actions for Success Q&A

NCR Confidential 3 What Is PPM? Parts Rejected Per Million Parts Received:  PPM = Rejects / Receipts * 1,000,000  Rolling 3 Month Average minimizes noise  Focus on high rejects AND high PPM Actual data from 1 March – 31 May 2011 High rejects impact NCR overall PPM more than individual supplier PPM

NCR Confidential 4 Supplier Quality PPM – Global View 350 PPM Actions  Use of MSA to validate and calibrate rejections between supplier and NCR Sites  Weekly focused actions on failure modes impacting overall PPM target  Analysis of SCAR failure mode data to drive DMAIC projects  Individual Top Offender Supplier action plans to achieve 350ppm  Supplier Webcast every two months – Next 8/10/11  PPAP requirement for all New Parts/Suppliers

NCR Confidential 5 PPM Requirements – What you need to do March - May 3-Month rolling average: 657 PPM What actions must you take to achieve 350 PPM? PPM Requirements July 2011: 500 PPM October 2011: 350 PPM March 2012: 300 PPM October 2012: 200 PPM

NCR Confidential 6 Short Term Actions For suppliers > 350 PPM:  108 letters sent requesting Action Plan  Received majority – communicating with suppliers who haven’t provided plan  Immediately -  Confirm updated Supplier Inspection program  Return 350 PPM Action Plan to NCR  Monthly review with your SQE to begin  Immediate increase in inspection Execute Action Plan to achieve 350 PPM by October but begin inspection NOW to reduce rejects at NCR

NCR Confidential 7 Supplier Quality Training  Quality Tools  Statistical Process Control  Control Charts  PPAP Training SPC and Control Charts will enable early warning and prevent defective parts from being shipped to NCR.

NCR Confidential 8 Supplier Quality Design & Development (SQDD) Purpose  Assure smooth part & module introduction to NCR – PPAP & Design Review  Selection of quality suppliers for NPI Current Status  Design review started on key programs (S1, S2 & SDM)  PPAP qualification = Started with 30% rejection rate  Reviewing suppliers capability and alignment with NCR quality goals.  500 PPM by July 1 and 350 PPM by Oct 1, 2011 Future Activities  ID suppliers with score of 2 or 1 on score card for quality to prevent upfront involvements with new programs or winning new business  Award suppliers new business with score 4 & 5 across the score card with cost advantage

NCR Confidential 9 Supplier Quality Expectations  Inspection and 350 PPM plan due – Review with SQE  Clear understanding of PPAP and SPC PPM Requirement  July 2011: 500 PPM  October 2011: 350 PPM  October 2012: 200 PPM Webcast Schedule August 10 Results of July goals and actions to ensure October 350 PPM October YTD summary, final 2011 actions required December supplier requirements October 1, 2011: 350 PPM

NCR Confidential 10 Long Term – YE2012 Supplier Quality web portal Supplier Approval List updated 200 PPM Actions for Success Short Term – 3Q2011 Finalize Qualification Process within NCR India Supplier & Critical 40 supplier action plans – next steps Finish SPC/PPAP training for top suppliers Report card on 350 project plan Supplier metrology requirements established and communicated Supplier inspection plan submissions – suppliers > 500 PPM Mid Term – end 1Q2012 Desourcing process Drawing uniformity from NCR Supplier Metrology requirements achieved Sampling sustainment strategy 300 PPM

NCR Confidential 11 Resources and Contacts For Supplier Resources: Assistance with NPI, PPAP, FAI: Wagih Wazni Director, Global Supplier Quality Engineer Assistance with Production Parts, Incoming Inspection, SCARS, 350 PPM Plan: Michael Crutch Director, Supplier Quality Excellence Overall quality issues: Robert Mele VP, Quality and Continuous Improvement

NCR Confidential 12 Q&A