Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q4 2023 Earnings Presentation
23 slides from Diebold Nixdorf's earnings presentation, Feb 14, 2024
Slide 1: Fourth Quarter and Full Year 2023 Earnings
Fourth Quarter and Full Year 2023 Earnings Performance Summary Update February 14, 2024 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may contain statements that are not historical information and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements give current expectations or forecasts of future events
Slide 3: 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 4: Fourth Quarter 2023 Summary
Fourth Quarter 2023 Summary Winning with Customers Strong Fourth Quarter Financial Results(1) • Consistent installed base refresh activity as customers increasingly replace legacy ATMs with new DN Series • Q4-23 revenue of $1,038M, up 7.6% YoY recycling ATMs • Q4-23 gross profit of $276M, up 23.2% Y
Slide 5: Global Review 2023
Global Review 2023 Balanced, global business with solid revenue growth across all regions in 2023 North America Europe (~30% of 2023 Revenue) (~40% of 2023 Revenue) • 2023 Revenue up low-double digits YoY • 2023 Revenue up high-single digits YoY • Highlights: • Highlights: ‒ Strong cash recycling ma
Slide 6: Consolidated Full Year 2023 Financial Summary
Consolidated Full Year 2023 Financial Summary Customer focus, improved operations and committed employees led to meaningful improvements in revenue and profitability Non-GAAP Summary(1) Full Year Full Year Change Overview ($ in millions) 2022 2023(2) YoY • Delivered significantly improved financial
Slide 7: Consolidated Q4-23 Financial Summary
Consolidated Q4-23 Financial Summary Another quarter of continued improvement to close out the year Non-GAAP Summary(1) Change Overview Q4 2022 Q4 2023 ($ in millions) YoY • Building momentum around improving operational Total Revenue $965 $1,038 7.6% performance as our team remained focused on deli
Slide 8: Q4 2023 Banking Financial Performance
Q4 2023 Banking Financial Performance Benefitting from demand for DN Series combined with the impact of supply chain and logistics improvement efforts Banking Segment Revenue ($M) Banking Segment Gross Profit ($M) YoY Growth Service Product $750 8.8% $689 $665 $665 $593 $202 $350 19.2% $294 $265 $26
Slide 9: Q4 2023 Retail Financial Performance
Q4 2023 Retail Financial Performance(1) Retail continues transition towards high value, self-checkout solutions (SCO) and Vynamic SaaS software – away from legacy offerings Retail Segment Revenue ($M) Retail Segment Gross Profit ($M) YoY Service Product Growth $278 $288 4.5% $276 $260 $252 $75 $74 $
Slide 10: Q4-23 Financial Condition Summary
Q4-23 Financial Condition Summary Continue to improve balance sheet for the benefit of customers, suppliers, employees, and shareholders ($ in millions) Q4-22 Q1-23 Q2-23 Q3-23(1) Q4-23 Adjusted EBITDA(2) $104 $64 $84 $109 $144 Overview Working Capital source (use) $144 $(3) $(239) $(56) $99 • Posit
Slide 11: 2024 Performance Outlook
2024 Performance Outlook Entering 2024 with improved momentum and well positioned for future success Full Year 2023 Full Year Key Details Actuals(1) 2024 Outlook • Profitable revenue growth in the low single digit range Low single-digit Total Revenue(2) $3.75B • Long-term growth drivers around self-
Slide 12: Diebold Nixdorf Continuous Improvement Journey
Diebold Nixdorf Continuous Improvement Journey Focusing on key processes to continuously deliver value to customers and shareholders People Profitable Revenue Growth • Through trust, transparency and a shared • Win new customers, increase wallet share, commitment to excellence, we strive to People a
Slide 13: Supplemental Slides
Supplemental Slides 13
Slide 14: Reconciliation of GAAP results to Non-GAAP results – Q4-23
Reconciliation of GAAP results to Non-GAAP results – Q4-23 ($M) Impact of implementing Fresh Start Accounting - Shows the effects of having adopted Fresh Start Accounting in the successor period as well as the elimination of Reorganization items, net. Restructuring and transition - personnel expense
Slide 15: Reconciliation of GAAP results to Non-GAAP results – Full Year 2023
Reconciliation of GAAP results to Non-GAAP results – Full Year 2023 ($M) * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having implemented Fresh Star
Slide 16: Reconciliation of free cash flow
Reconciliation of free cash flow ($M) Q4-22 2022 Q1-23 Q2-23 Q3-23* Q4-23* 2023* Net cash provided (used) by operating activities $ 94.9 $ (387.9) $ (95.9) $ (241.7) $ (82.2) $ 162.8 $ (257.0) Excluding the impact of changes in cash of assets held for sale and the use of cash for M&A activities (1.6
Slide 17: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q4-23
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q4-23 ($M) The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Adjusted EBITDA is EBITDA excluding the effects of the following items: share-bas
Slide 18: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Full Year 2023
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Full Year 2023 ($M) * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having implement
Slide 19: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q3-23
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q3-23 ($M) * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having implemented Fresh
Slide 20: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q2-23
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q2-23 ($M) The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Adjusted EBITDA is EBITDA excluding the effects of the following items: share-bas
Slide 21: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q1-23
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q1-23 ($M) The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Adjusted EBITDA is EBITDA excluding the effects of the following items: share-bas
Slide 22: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Trailing Twelve Month
Reconciliation of GAAP net income to EBTIDA and Adjusted EBITDA – Trailing Twelve Month Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 TTM TTM TTM TTM* TTM* Net (loss) income $ (585.6) $ (513.2) $ (991.4) $ 1,179.6 $ 1,376.6 Impact of Fresh Start Accounting - - 14.6 32.5 Income tax expense (benefit) 149.2 119.4 30.4
Slide 23: Net Debt Summary and Net Leverage
Net Debt Summary ($M) and Net Leverage Q4-22 Q1-23 Q2-23 Q3-23 * Q4-23 * Cash, cash equivalents, restricted cash and short-term investments $ 343.7 $ 263.0 $ 552.8 $ 456.9 $ 605.7 Cash included in assets held for sale 2.8 0.9 0.2 - - Debt instruments (2,609.8) (2,655.4) (3,416.6) (1,258.2) (1,252.7)