Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q2 2021 Earnings Presentation
22 slides from Diebold Nixdorf's earnings presentation, Jul 29, 2021
Slide 1: Second Quarter 2021 Earnings
Second Quarter 2021 Earnings July 29, 2021
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 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: Leveraging Competitive Differentiation for Growth
Leveraging Competitive Differentiation for Growth • Revenue growth of 6% YoY - Retail revenue growth of 38% YoY • Strong product order growth of ~40% • Backlog growth of ~20% - Banking share gains led by DN Series ATMs TM - Retail strength led by self-checkout • DN AllConnect Data Engine acceleratin
Slide 5: Growth Strategy Rooted in Foundational Strengths & Advanced Capabilities
Growth Strategy Rooted in Foundational Strengths & Advanced Capabilities Foundational Strengths Advanced Capabilities Drive Growth Opportunities Banking Supporting Our Customers’ Digital Self-Service Product-Related Terminal Cash Recycling & Managed Value-Add Transformation Agenda Products Services
Slide 6: Increasing Global Supply Chain Complexities
Increasing Global Supply Chain Complexities Lower Logistics Reliability1 Global Demand for Semiconductors Exceeds Supply2 Projected Global On-time Port Arrivals 100% 120 Demand Supply 2019 2020 2021 115 75% 110 105 50% 100 95 25% 90 Jan Mar May Jul Sep Nov 1) Sea-Intelligence Maritime Analysis track
Slide 7: Financial Highlights of Q2-2021
Financial Highlights of Q2-2021 Total Revenue ($M) Gross Profit1 ($M) & Margin1 Organic FX and Divestitures Non-recurring Cost Benefits $944 $264 $262 $890 +6% as $30M Column1 reported ~$20M ~$30M delayed to future periods due +2.5% adjusted to global supply 29.6% 27.7% for FX & divestitures chain c
Slide 8: Eurasia Banking Highlights
Eurasia Banking Highlights Revenue ($M) $338 $24 $326 • 39% YoY product order growth and market share gains ($24) ($12) led by DN Series • Revenue decreased 3% as reported and 7% adjusted for currency & divestitures primarily due to lower Product volume in Mediterranean countries Q2-20 Core FX Dives
Slide 9: Americas Banking Highlights
Americas Banking Highlights Revenue ($M) $331 $3 $313 • 44% YoY product order growth and market share gains ($18) ($3) led by for DN Series, including wins at a top 10 and top 25 US bank • Revenue decreased 6% YoY as reported and adjusted for currency & divestitures due to lower volume in North Amer
Slide 10: Retail Highlights
Retail Highlights Revenue ($M) • 40% YoY product order growth and market share gains $19 $305 led by SCO solutions $66 $221 • Revenue increased 38% as reported and 28% ($1) adjusted for currency & divestitures • Growth from meaningfully higher SCO and POS volumes, stronger SCO service attach rates a
Slide 11: Free Cash Flow, Leverage and Debt Maturities
Free Cash Flow, Leverage and Debt Maturities Levered & Unlevered Free Cash Flow1 Debt Maturities4 Levered Unlevered • No material maturities until November 2023 1H-20 1H-21 Balances as of Interest Rate Maturity & Facilities June 30, 2021 Index & Margin4 Termination Dates ($M) ($46) $39M in April, 20
Slide 12: 2021 Outlook
2021 Outlook Prior Outlook Current Outlook Key Factors • Backlog growth and FX benefits offset revenue Total $4.0 - $4.1B $4.0 - $4.1B delays from prolonged logistics Revenue Adjusted • Higher inflation for direct materials and freight $480 – $500M $455 - $475M EBITDA1 • Higher inflation for direct
Slide 13: Mid-year Summary
Mid-year Summary Strong Customer Demand Challenging Supply Chain Conditions Banking ✓ Winning market share with our next- • Longer lead times for components, generation DN Series ATM especially semiconductors ✓ Growing adoption of IoT and machine • Prolonged logistics schedules learning (ACDE) among
Slide 14: Supplemental Slides
Supplemental Slides 13 | DIEBOLD NIXDORF
Slide 15: Q2 2021 Profit & Loss Statement
Q2 2021 Profit & Loss Statement Reconciliation of GAAP to non-GAAP ($Millions) 2021 % of Net Restructuring and Amortization of Wincor Legal / deal Other non- 2021 % of Net (GAAP) Sales DN Now Nixdorf purchase accounting expense routine (non-GAAP) Sales transformation intangible assets (non-cash) inc
Slide 16: Q2 2020 Profit & Loss Statement
Q2 2020 Profit & Loss Statement Reconciliation of GAAP to non-GAAP ($Millions) 2020 % of Net Restructuring and Amortization of Wincor Legal / deal Divestitures Inventory Loss making Other 2020 % of Net (GAAP) Sales DN Now Nixdorf purchase expense and fixed asset charge/gain contract related to non-r
Slide 17: Revenue Variance for FX, Divestitures & Related Actions
Revenue Variance for FX, Divestitures & Related Actions ($Millions) Segment View Business Line $Millions Q2-21 Q2-20 Variance Variance % $Millions Q2-21 Q2-20 Variance Variance % F/(U) F/(U) Eurasia Banking Revenue (GAAP) 326 338 (12) -3.6% Services Revenue (GAAP) 494 469 25 5.3% FX Impact - 24 FX I
Slide 18: Non-GAAP Gross Profit Variance for FX, Divestitures & Related Actions
Non-GAAP Gross Profit Variance for FX, Divestitures & Related Actions Reconciliation of GAAP to non-GAAP ($Millions) Segment View Business Line $Millions Q2-21 Q2-20 Variance Variance % $Millions Q2-21 Q2-20 Variance Variance % F/(U) F/(U) Eurasia Banking Gross Profit (Non-GAAP) 94 102 (8) -7.8% Ser
Slide 19: Gross Profit & Operating Expense
Gross Profit & Operating Expense Reconciliation of GAAP to non-GAAP ($Millions) Gross Profit – Segment View Operating Expense Q2-20 Q2-21 Q2-20 Q2-21 Revenue (GAAP) $ 890 $ 944 Revenue (GAAP) $890 $944 Total Gross Profit (GAAP) $ 248 $ 252 Total Operating Expense (GAAP) $227 $239 Americas Banking 10
Slide 20: Adjusted EBITDA
Adjusted EBITDA Reconciliation of GAAP to non-GAAP ($Millions) Adjusted EBITDA Trailing 12-month Adjusted EBITDA Reconciliation Q2-20 Q2-21 Q2-21 GAAP Revenue $890 $944 GAAP Revenue $3,988 GAAP Net Income ($23) ($30) GAAP Net Income ($190) Income tax (benefit) expense ($3) (11) Income tax (benefit)
Slide 21: Free Cash Flow
Free Cash Flow Reconciliation of GAAP to non-GAAP ($Millions) Q1-20 Q2-20 Q1-21 Q2-21 2020-YTD 2021-YTD Net cash provided (used) by operating activities (GAAP measure) ($78) ($90) ($65) ($78) ($168) ($144) Excluding the impact of changes in cash of assets held for sale and the use of cash for 23 $5
Slide 22: Return on Invested Capital & Net Debt
Return on Invested Capital & Net Debt ($Millions) Return on Invested Capital (ROIC) Net Debt 2018 2019 2020 TTM $ Millions 6/30/20 6/30/21 Q2 2021 Cash, cash equivalents, restricted cash and short term Revenue $4,579 $4,409 $3,902 $3,989 GAAP operating profit (loss) ($326) ($27) $24 $79 investments