Slide 1: Third Quarter 2023 Earnings Performance Summary Update
Third Quarter 2023 Earnings Performance Summary Update November 9, 2023
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: Executing on our 2023 Operating Priorities
Executing on our 2023 Operating Priorities DN made meaningful progress against each of its 2023 Operating Priorities that were outlined at the beginning of the year - significant deleveraging, improved liquidity and growth in revenue & profitability Fortifying the Balance Adopting a Continuous Execu
Slide 5: Continued Innovating, Q3 Customer Solutions Focus
Continued Innovating, Q3 Customer Solutions Focus Increasing target addressable market with complete suite of Providing a smooth transition for customers into our higher branch transformation solutions – automating all branch cash value, higher margin business offering touchpoints Branch Transformat
Slide 6: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights Q3-23 results in-line with expectations with meaningful improvements in revenue and profitability both from a year-over-year and sequential quarter perspective – higher revenue with gross margin expansion flowing through to operating profit Revenue ($M)(1) Gross Profit
Slide 7: Supply Chain Optimization
Supply Chain Optimization Supply chain normalization and production improvements are driving higher factory output, which positions us well to deliver on ATM and SCO fourth quarter product revenue targets Quarterly ATM Factory Shipments Quarterly SCO Factory Shipments (units in thousands) (units in
Slide 8: Q3 2023 Banking Financial Performance
Q3 2023 Banking Financial Performance(1) Banking Segment Revenue ($M) Banking Segment Gross Profit ($M) YoY Service Product Growth $165 $164 $689 $665 $665 14.5% $156 $593 $144 $141 $580 $294 $265 $264 31.5% $200 $212 Gross Profit Revenue $380 $395 $381 $400 $401 5.6% Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q
Slide 9: Q3 2023 Retail Financial Performance
Q3 2023 Retail Financial Performance(1,2) Retail Segment Revenue ($M) Retail Segment Gross Profit ($M) YoY Service Product Growth 23.7% $75 $275 $278 $68 $69 $260 $252 $63 $225 $56 $140 $136 43.3% $127 $117 $95 Gross Profit Revenue $130 $135 $133 $135 $143 9.5% Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-22 Q4
Slide 10: Q3 Year-to-Date Performance
Q3 Year-to-Date Performance Q3-23 results represent another solid quarter of performance – YTD performance shows meaningful improvements in revenue and profitability year-over-year, and is tracking toward the top half of our full year outlook(1) ranges for revenue and adjusted EBITDA Q3 YTD 2023 vs.
Slide 11: Deleveraging the Balance Sheet
Deleveraging the Balance Sheet A key priority in 2023 was fortifying the balance sheet and deleveraging – recently completed debt restructuring process has materially de-levered the capital structure, and it is expected to be further enhanced with a new revolving credit facility Gross Debt ($M) Net
Slide 12: Free Cash Flow and Liquidity
Free Cash Flow and Liquidity FCF in Q3-23 was a use, with a number of drivers related to the restructuring transaction and normalizing working capital that are not expected to recur at the same levels going forward; Q4-23 FCF is expected to be positive, resulting in projected liquidity at the end of
Slide 13: Third Quarter 2023 Takeaways
Third Quarter 2023 Takeaways • Delivered strong third quarter financial results with meaningful year-over-year and sequential quarter improvements in revenue and profitability • New Board of Directors in-place with significant experience in operational excellence and driving financial performance •
Slide 14: Supplemental Slides
Supplemental Slides DIEBOLD NIXDORF | 14
Slide 15: Reconciliation of GAAP results to Non-GAAP Results – Q3-23 ($M)
Reconciliation of GAAP results to Non-GAAP Results – Q3-23 ($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 Start Account
Slide 16: Reconciliation of GAAP results to Non-GAAP Results – YTD Q3-23 ($M)
Reconciliation of GAAP results to Non-GAAP Results – YTD Q3-23 ($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 Start Acc
Slide 17: Reconciliation of Quarterly Free Cash Flow ($M)
Reconciliation of Quarterly Free Cash Flow ($M) Q3-22 Q4-22 Q1-23 Q2-23 Q3-23* Net cash (used) provided by operating activities (176.2) 94.9 (95.9) (241.7) (82.0) Excluding the impact of changes in cash of assets held for sale and the use of cash for M&A activities 3.4 (1.6) 6.5 (0.5) 0.7 Excluding
Slide 18: Q3-23 Reconciliation of GAAP net loss to EBITDA and Adjusted EBITDA ($M)
Q3-23 Reconciliation of GAAP net loss to EBITDA and Adjusted EBITDA ($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 19: YTD Q3-23 Reconciliation of GAAP net loss to EBITDA and Adjusted EBITDA ($M)
YTD Q3-23 Reconciliation of GAAP net loss to EBITDA and Adjusted EBITDA ($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: Q3-23 Net Debt Summary ($M)
Q3-23 Net Debt Summary ($M) We believe that cash, cash equivalents, restricted cash, and short-term investments on the balance sheet that net cash against outstanding debt, presented as net debt above, is a meaningful measure. DIEBOLD NIXDORF | 20
Slide 21: FY2022 and TTM Q3-23 Reconciliation of GAAP net loss to EBITDA
FY2022 and Trailing Twelve Months (TTM) Q3-23 Reconciliation of GAAP net loss to EBITDA and Adjusted EBITDA ($M) TTM* 2022 09/30/23 Net loss $ (585.6) $ 1,179.6 Income tax expense (benefit) 149.2 107.4 Interest income (10.0) (12.8) Interest expense 199.2 271.7 Loss on Refinancing 32.1 32.1 Depreciat