Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q1 2021 Earnings Presentation
20 slides from Diebold Nixdorf's earnings presentation, May 10, 2021
Slide 1: First Quarter 2021 Earnings
First Quarter 2021 Earnings May 10, 2021 DieboldNixdorf.com
Slide 2: Use of non-GAAP Financial Information
Use of non-GAAP Financial Information To supplement our 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 are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding potential impact of the ongoing coronavirus (COVID-19) pandemic
Slide 4: DBD Investment Thesis Drives 2021 Outlook
DBD Investment Thesis Drives 2021 Outlook Free Cash Flow1 Return on Invested Capital1 $140 to $170 Transforming the 18% 15% Business Model to Generate $57 Strong Free Cash Flow1 and ROIC1 2020 2021 Outlook 2020 2021 Outlook Revenue $4,000 to $4,100 $3,902 Leveraging Our 3% – 5% growth Competitive Di
Slide 5: Q1-2021 Progress Report
Q1-2021 Progress Report Leveraging Competitive Q1-21 Results Differentiation for Growth ▪ Retail strength led by self-checkout ▪ Revenue growth ▪ Banking share gains led by DN +4% YoY to $944M SeriesTM ATM ▪ Increasing customer interest in IoT ▪ Operating Profit1 growth +25% YoY to $79M and machine
Slide 6: Financial Highlights of Q1-2021
Financial Highlights of Q1-2021 Total Revenue ($M) Gross Profit1 ($M) & Margin Organic FX and Divestitures $1,028 $911 $944 $273 +4% $254 29.0% $247 +110 bps 25.2% +2% 27.9% adjusted for 24.1% +380 bps FX and divestitures Q1-19 Q1-20 Q1-21 Q1-19 Q1-20 Q1-21 Operating Profit1 ($M) & Margin Adj. EBITD
Slide 7: Eurasia Banking Highlights
Eurasia Banking Highlights Revenue ($M) $21 $328 $311 $16 ($20) • Revenue increased 6% as reported and 5% adjusted for currency & divestitures • YoY growth driven by higher Product volume Q1-20 Core FX Divestitures Q1-21 Gross Profit1 ($M) & Margin $8 $0 $97 $90 ($1) • Higher Services & Software mar
Slide 8: Americas Banking Highlights
Americas Banking Highlights Revenue ($M) $345 $312 • Revenue declined 10% as reported and 7% ($25) ($6) ($2) adjusted for currency & divestitures • Lower Product volumes partially offset by growth in US National accounts and Software Q1-20 Core FX Divestitures Q1-21 Gross Profit1 ($M) & Margin $104
Slide 9: Retail Highlights
Retail Highlights Revenue ($M) $19 $304 $31 $256 • Revenue increased 19% as reported and 11% ($1) adjusted for currency & divestitures • Growth from higher SCO and POS volumes and Software Q1-20 Core FX Divestitures Q1-21 Gross Profit1 ($M) & Margin $5 $79 $15 $60 ($0) • Profit and margin improvemen
Slide 10: Free Cash Flow, Leverage and Debt Maturities
Free Cash Flow, Leverage and Debt Maturities Levered & Unlevered Free Cash Flow1 Debt Maturities4 Q1-19 Q1-20 Q1-21 • No material maturities until November 2023 Facilities Balances as of Interest Rate Maturity & ($10) March 31, 2021 Index & Margin4 Termination Dates ($M) ($29) ($30) Revolving Credit
Slide 11: Outlook for 2021
Outlook for 2021 2020A 2021E $4.0 - $4.1B Total Revenue $3.9B 3% to 5% YoY growth $480 – $500M Adjusted EBITDA1 $453M 6% to 10% YoY growth $140 – $170M Free cash flow1 $57M ~150% to ~200% YoY growth ROIC1 ~15% ~18% 10 | DIEBOLD NIXDORF 1) Non-GAAP metrics
Slide 12: Supplemental Slides
Supplemental Slides 11 | DIEBOLD NIXDORF
Slide 13: Q1 2021 Profit & Loss Statement
Q1 2021 Profit & Loss Statement Reconciliation of GAAP to non-GAAP ($Millions) Restructuring and Other non- DN Now Amortization of Wincor routine 2021 % of Net transformation Nixdorf purchase accounting Legal / deal income / 2021 % of Net (GAAP) Sales expenses intangible assets (non-cash) expense ex
Slide 14: Q1 2020 Profit & Loss Statement
Q1 2020 Profit & Loss Statement Reconciliation of GAAP to non-GAAP ($Millions) Restructuring Amortization of Wincor Loss making and DN Now Nixdorf purchase Divestitures Costs related to contract related Other 2020 % of Net transformation accounting intangible Legal / deal and fixed previously divest
Slide 15: Gross Profit and Operating Expense Reconciliation
Gross Profit and Operating Expense Reconciliation Reconciliation of GAAP to non-GAAP ($Millions) Gross Profit – Segment View Operating Expense Q1-19 Q1-20 Q1-21 Q1-19 Q1-20 Q1-21 Revenue (GAAP) $1,028 $911 $944 Revenue (GAAP) $1,028 $911 $944 Total Gross Profit (GAAP) $246 $227 $273 Total Operating
Slide 16: Revenue Variance for FX, Divestitures and Related Actions
Revenue Variance for FX, Divestitures and Related Actions Reconciliation of GAAP to non-GAAP ($Millions) Segment View $Millions Q1-21 Q1-20 Variance F/(U) Variance % Eurasia Banking Revenue (GAAP) 327.8 310.5 17.3 5.6% FX Impact - 20.9 Divestitures and Related Actions - (19.7) Eurasia Banking Adjust
Slide 17: Non-GAAP Gross Profit Variance for FX, Divestitures & Related Actions
Non-GAAP Gross Profit Variance for FX, Divestitures & Related Actions ($Millions) Segment View $Millions Q1-21 Q1-20 Variance F/(U) Variance % Eurasia Banking Gross Profit (Non-GAAP) 96.7 89.8 6.9 7.7% FX Impact - 7.6 Divestitures and Related Actions - 0.2 Eurasia Banking Adjusted Gross Profit (Non-
Slide 18: Adjusted EBITDA
Adjusted EBITDA Reconciliation of GAAP to non-GAAP ($Millions) Adjusted EBITDA Trailing 12-month Adjusted EBITDA Reconciliation Q1-19 Q1-20 Q1-21 Q1-21 GAAP Revenue $1,028 $911 $944 GAAP Revenue $3,935 GAAP Net Income ($132) ($93) ($8) GAAP Net Income ($182) Income tax (benefit) expense $60 $20 $1 I
Slide 19: Free Cash Flow
Free Cash Flow Reconciliation of GAAP to non-GAAP ($Millions) Free Cash Flow Reconciliation Trailing 12-month Free Cash Flow Reconciliation Q1-19 Q1-20 Q1-21 Q1-20 Q4-20 Q1-21 Net cash provided (used) by operating activities (GAAP measure) ($57) ($78) ($65) Net cash provided (used) by operating acti
Slide 20: Return on Invested Capital and Net Debt
Return on Invested Capital and Net Debt ($Millions) Return on Invested Capital (ROIC) Net Debt TTM $ Millions 3/31/20 3/31/21 2018 2019 2020 Q1 2021 Revenue $4,579 $4,409 $3,902 $3,936 Cash, cash equivalents, restricted cash and short term GAAP operating profit (loss) (326) (27) 24 86 investments (G