Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q3 2021 Earnings Presentation
23 slides from Diebold Nixdorf's earnings presentation, Oct 28, 2021
Slide 1: Third Quarter 2021 Earnings
Third Quarter 2021 Earnings October 28, 2021 DieboldNixdorf.com
Slide 2: Use of non-GAAP Financial Information
Use of non-GAAP Financial Information To supplement its condensed consolidated financial statements presented in accordance with GAAP, the company considers certain financial measures that are not prepared in accordance with GAAP, including non-GAAP results, adjusted diluted earnings per share, free
Slide 3: Forward-looking Statements
Forward-looking Statements This document contains statements that are not historical information and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the potential impact of the ongoing coronavirus (COVID-19)
Slide 4: Positioned To Respond to Evolving Consumer Trends
Positioned To Respond to Evolving Consumer Trends “…more and more people using “It’s been no surprise that some the once-avoided self-checkout banks have begun cutting back aisles…in one of the many on branches…other banks, reversals seen during the however, are working to pandemic, many shoppers fi
Slide 5: Q3 2021 Business Highlights
Q3 2021 Business Highlights Awarded Germany’s Best Energy Scouts 2021 Won $12M+ contract with Banco Azteca in For Sustainability Updates Mexico including our DN SeriesTM cash recyclers at Paderborn Facility Expanded our relationship with a large, multi- country retailer in Europe, with a competitive
Slide 6: Focused On Growth Initiatives
Focused On Growth Initiatives Securing more Managed Services business including a win with a Tier 1 Financial Institution Scaling our Vynamic™ Payments Platform with a top 10 global bank across 17,000+ ATMs New horizontal opportunity in the Electric Vehicle Charging Stations market for our 8,000 sea
Slide 7: Global Supply Chain Update
Global Supply Chain Update Supply Chain, Logistics and Cost Inflation Raw Materials/Inputs Outbound Lead Time – Mainly to Americas Inbound suppliers challenged by same logistics delays & costs that we face for outbound Delays in seabound shipping Lack of semiconductor chip availability Port delays W
Slide 8: Q3 2021 Financial Summary
Q3 2021 Financial Summary Total Revenue ($M) Gross Profit1 ($M) & Margin1 Organic FX and Divestitures $285 $995 $958 $8M $263 ~$90M delayed to future periods due to global supply 28.6% 27.4% Includes ~$10M chain complexities of supply chain inflation Q3-20 Q3-21 Q3-20 Q3-21 Operating Profit1 ($M) &
Slide 9: Eurasia Banking Highlights
Eurasia Banking Highlights Revenue ($M) $364 $368 $323 • Revenue decrease primarily due to supply chain challenges impacting timing of deliveries and installations of product, with collateral impact to services and software plus the termination of expiring Service contracts. Q3-20 Q3-20* Q3-21 Gross
Slide 10: Americas Banking Highlights
Americas Banking Highlights Revenue ($M) $368 $368 $347 • Although product revenue remained flat, the business experienced declines in Service and Software revenue due to the negative collateral impact of unfavorable geographic mix of installations from North America to LATAM. Q3-20 Q3-20* Q3-21 Gro
Slide 11: Retail Highlights
Retail Highlights Revenue ($M) $263 $288 $267 • Continued growth due to strength in POS and SCO demand. Q3-20 Q3-20* Q3-21 Gross Profit1 ($M) & Margin1 $79 $69 $71 • Gross margin percentage increase directly attributable to growth in SCO revenue. 27.4% 26.3% 26.6% Q3-20 Q3-20* Q3-21 1) Non-GAAP metr
Slide 12: Free Cash Flow, Leverage and Debt Maturities
Free Cash Flow, Leverage and Debt Maturities Levered & Unlevered Free Cash Flow1 Levered Unlevered Debt Maturities4 YTD 2020 YTD 2021 Balances as of Interest Rate Maturity & ($21) Facilities September 30, Index & Margin4 Termination Dates 2021 ($M) ($129) $39M in April 2022 ($159) Revolving Credit $
Slide 13: 2021 Outlook
2021 Outlook Prior Outlook Current Outlook Key Factors Total • Approximately $120m of revenue deferred to $4.0 - $4.1B $3.90 - $3.95B Revenue future periods due to logistics challenges. • Gross Profit from revenue deferral Adjusted $455 - $475M $415 - $435M • Higher inflation for freight and direct
Slide 14: Q4 & End of FY 2021 Outlook
Q4 & End of FY 2021 Outlook Let’s start with the positives... Challenges… Strong demand for self-service and Improved supply chain & logistics but expect automation solutions lumpiness on the path forward Healthy backlog of orders Inflationary pressures on raw materials lessening – however will take
Slide 15: Supplemental Slides
Supplemental Slides 14 | DIEBOLD NIXDORF
Slide 16: Q3 2021 Profit & Loss Statement
Q3 2021 Profit & Loss Statement Reconciliation of GAAP to non-GAAP ($Millions) 2021 % of Net Restructuring and Amortization of Wincor Loss making contract Legal / deal Other non- 2021 % of Net (GAAP) Sales DN Now Nixdorf purchase accounting related to expense routine income (non-GAAP) Sales transfor
Slide 17: Q3 2020 Profit & Loss Statement
Q3 2020 Profit & Loss Statement Reconciliation of GAAP to non-GAAP ($Millions) 2020 (GAAP) % of Net Sales Restructuring and DN Amortization of Legal / deal expense Other 2020 % of Net Sales Now transformation Wincor Nixdorf non-routine inc/exp (non- expenses purchase accounting GAAP) intangible asse
Slide 18: Revenue Variance for FX, Divestitures & Related Actions
Revenue Variance for FX, Divestitures & Related Actions ($Millions) Segment View Business Line $Millions Q3-21 Q3-20 Variance Variance $Millions Q3-21 Q3-20 Variance Variance F/(U) % F/(U) % Eurasia Banking Revenue (GAAP) 323 364 (41) -11.3% Services Revenue (GAAP) 473 499 (26) -5.2% FX Impact - 7 F
Slide 19: Non-GAAP Gross Profit Variance for FX, Divestitures & Related Actions
Non-GAAP Gross Profit Variance for FX, Divestitures & Related Actions Reconciliation of GAAP to non-GAAP ($Millions) Segment View Business Line $Millions Q3-21 Q3-20 Variance Variance $Millions Q3-21 Q3-20 Variance Variance F/(U) % F/(U) % Eurasia Banking Gross Profit (Non-GAAP) 98 112 (14) -12.5% S
Slide 20: Gross Profit & Operating Expense
Gross Profit & Operating Expense Reconciliation of GAAP to non-GAAP ($Millions) Gross Profit – Segment View Operating Expense Q3-20 Q3-21 Q3-20 Q3-21 Revenue (GAAP) $ 995 $ 958 Revenue (GAAP) $995 $958 Americas Banking 368 347 Eurasia Banking 364 323 Retail 263 288 Total Operating Expense (GAAP) $26
Slide 21: Adjusted EBITDA
Adjusted EBITDA Reconciliation of GAAP to non-GAAP ($Millions) Adjusted EBITDA Trailing 12-month Adjusted EBITDA Reconciliation Q3-20 Q3-21 Q3-20 Q3-21 GAAP Revenue $995 $958 GAAP Revenue $3,948 $3,952 GAAP Net Income ($101) ($2) GAAP Net Income ($340) ($91) Income tax (benefit) expense (22) (1) Inc
Slide 22: Free Cash Flow
Free Cash Flow Reconciliation of GAAP to non-GAAP ($Millions) Q3-20 Q3-21 2020-YTD 2021-YTD Net cash provided (used) by operating activities (GAAP measure) (29) (148) (197) (292) Excluding the impact of changes in cash of assets held for sale and the use of cash 10 6 38 13 for M&A activities Excludi
Slide 23: Return on Invested Capital & Net Debt
Return on Invested Capital & Net Debt ($Millions) Return on Invested Capital (ROIC) Net Debt $ Millions 9/30/20 9/30/21 Cash, cash equivalents, restricted cash and short term investments (GAAP Measure) $284 $230 Cash included in assets held for sale 4 1 Debt instruments (2,446) (2,496) Net debt (non