Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q3 2022 Earnings Presentation
34 slides from Diebold Nixdorf's earnings presentation, Nov 8, 2022
Slide 1: Diebold Nixdorf Shareholder Letter Third Quarter 2022
De DieboldNixdorf.com Diebold Nixdorf Shareholder Letter Third Quarter 2022
Slide 2: In the third quarter we:
In the third quarter we: ● Secured an approximately $8 million deal with Banco Azteca – driven by its move from window to self-service, replacing its existing ATM fleet with DN Series plus Vynamic suite. ● Won an approximately $3 million deal with Kapital Bank in Uzbekistan - expanding its ATM netwo
Slide 3: In the third quarter we:
In the third quarter we: ● Secured an approximately $10 million deal with one of Europe’s leading fuel and convenience retailers for Vynamic FCx platform, Vynamic software and services for implementation and maintenance around these solutions. This rollout will include over 1,300 sites in Spain and
Slide 4: Here are a few key highlights from the report
Here are a few, key highlights from the report: ● We worked to reduce our use of energy and other resources, including managing paper consumption and diverting waste streams that previously had gone into landfills, and we reminded each other to make choices in our lives and our work that make a diff
Slide 5: Backlog was largely flat closing Q3 at ~$1.4B
● Backlog was largely flat closing Q3 at ~$1.4B fueled by consistent demand for our Banking & Retail products. Based on our operating model, we expect ~80% of 2023 Product revenue to be secured by the backlog at year-end. 1) Non-GAAP metric. See “Use of Non-GAAP Financial Information” and the Financ
Slide 6: Lower year-over-year SCO volume; Gross Profit & Margin
Lower year-over-year SCO volume largely due to the timing of in-transit units to the Americas, materials availability issues, and general timing. EPOS outperformance largely due to timing as units from Q2 were caught up in Q3 due to materials availability issues. Gross Profit ($M) & Margin
Slide 7: Key Assumptions / Drivers
Key Assumptions / Drivers
Slide 8: Forecasted Number of Revenue Units by Product by Year
*Includes ~($62)M of financing fees associated with the transactions contemplated by the TSA. Forecasted Number of Revenue Units by Product by Year:
Slide 9: Adjusted EBITDA and unlevered free cash flow outlook notes
(1) With respect to the company’s adjusted EBITDA outlook, it is not providing a reconciliation to the most directly comparable GAAP financial measures because it is unable to predict with reasonable certainty those items that may affect such measures calculated and presented in accordance with GAAP
Slide 10: Q3 2022 QTD Profit & Loss Statement
Q3 2022 QTD Profit & Loss Statement Reconciliation of GAAP to non-GAAP (in $ Millions) Total Operaticg Expenses 183 B26 @D cE ry oe 65, 35 om 05 @ cy Te
Slide 11: 18 | Shareholder Letter / Q3 2022
18 | Shareholder Letter / Q3 2022
Slide 12: Q2 2022 QTD Profit & Loss Statement
Services Products Total Revere Q2 2022 QTD Profit & Loss Statement Reconciliation of GAAP to non-GAAP (in $ Millions) Amortization of Resryctring Wor Mader! bid 22022 KEDNNow. purchase Aevi-Held for Legal/ Deal Crisis in wer nons | gr 2022 . (Exab | %etNetSales yytusormation —ateounting Sale Zpewe—U
Slide 13: 19 | Shareholder Letter / Q3 2022
19 | Shareholder Letter / Q3 2022
Slide 14: Banking Revenue reconciliation
Banking Reveve (GAAP) S003 STL (a) ——isate FX impact - 408) Helfer oe non coe Europea rei busines : : Divestitures and Related Actions = G4) ania/ Ure get _ as Tankng Aired Reeaee Ros GAAP) es ea__3a8 Tea ener GF Ser ear nae Stee 885) ‘Held for sale non-core European retail business Ga) 47) Deter Ra
Slide 15: 20 | Shareholder Letter / Q3 2022
20 | Shareholder Letter / Q3 2022
Slide 16: Adjusted Gross Profit reconciliation
Cann eS] Ge] ee) Finest - 83) eld forsale non-core European retail business : : Divettures and Related Actions : es) Russia /Ulraine Impact = a0) Banking Adjusted Gross Profit (Non-GAAP) 1351667 G83 __-139% ‘Retail Gross Proit™ sé A G45__31.0% FX impact - (103) Held forsale non-core European retail
Slide 17: Segment results note on held for sale retail business
1 Amounts include the impact of held for sale non-core European retail business for comparability purposes. Otherwise, there is no difference between GAAP and Non-GAAP segment results; as the GAAP to Non-GAAP adjustments shown in Note 1 of the Earnings Release are not assigned to the segments, as th
Slide 18: Banking and Retail Revenue
| g222 riance F/(U) lj Varian Banking Revenue (GAAP) 580.3 590.2 09) 1.7% Held for sale non-core European retail business 5 - Banking Adjusted Revenue (Non-GAAP) 3803 5902 OS) 1.7% ‘Retail Revenue (GAAP) 230.1 2615 Gis) 12.0% ‘Held for sale non-core European retail business Gi) G2) Retail Adjusted R
Slide 19: 22 | Shareholder Letter / Q3 2022
22 | Shareholder Letter / Q3 2022
Slide 20: Banking and Retail Gross Profit
Bios» For | ance FU) I ‘Banking Gross Profit 1435 147.5 (40) Held forsale non-core European retall business = : Banking Adjusted Gross Profit (Non-GAAP) 1351475 GH___-27% Retail Gross Profit” 54.6 61.9 (73) _-11.8% Held for sale non-core European retail business 12 05 Retail Adjusted Gross Profit (N
Slide 21: Segment results note on held for sale retail business
1 Amounts include the impact of held for sale non-core European retail business for comparability purposes. Otherwise, there is no difference between GAAP and Non-GAAP segment results; as the GAAP to Non-GAAP adjustments shown in Note 1 of the Earnings Release are not assigned to the segments, as th
Slide 22: Trailing 12-month Adjusted EBITDA
Trailing 12-month Adjusted EBITDA (in $ Millions)
Slide 23: EBITDA and Adjusted EBITDA definitions
The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Consistent with the company's current credit agreement, Adjusted EBITDA is EBITDA excluding the effects of the following items: share-based compensation, amor
Slide 24: Trailing 12-month Free Cash Flow
Trailing 12-month Free Cash Flow (in $ Millions)
Slide 25: Free cash flow definition
Free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities from continuing operations less capital expenditures, less cash used for capitalized software development, and excluding the impact of changes in cash of assets held for sale and the use of cash for M
Slide 26: Return on invested capital definition
2 Return on invested capital (ROIC) is a non-GAAP financial measure defined as adjusted net operating profit after tax (NOPAT) utilizing a 30% estimated effective tax rate divided by average invested capital for the period. Invested capital consists of net debt, leases, pension and other post-retire
Slide 27: Historical to current segment presentation adjustments
[Historical Presentation Adjustments “Current Presentation Professional, Maintenance fandSupport Software Historical Segment Amount | Services Licenses Amount __Updated Segment ‘Senses Sales 3 455 308 S143 Services Sales Products Sales 2803 iss 296.1 Products Sales Software Sales 106.7 (08) ass) ota
Slide 28: 27 | Shareholder Letter / Q3 2022
27 | Shareholder Letter / Q3 2022
Slide 29: Historical to current segment presentation adjustments
Historical Presentation “Adjustments, “Current Presentation Professional, Maintenance and Support Software Historical Segment Services ___Licenses Amount Updated Segment ‘Senvces Sales 2586 1.5689. Services Sales Products Sales 26 9260 Products Sales ‘Software Sales 2686) 29) ‘otal Sales = = 24919 T
Slide 30: 28 | Shareholder Letter / Q3 2022
28 | Shareholder Letter / Q3 2022
Slide 31: Historical to current segment presentation adjustments
Historical Presentation Adjustments ‘Current Presentation Professional, Maintenance and Support Software Historical Segment Amoust| Services Licenses Amount Updated Segment Senices Sues 3 473. 36 361.7 Serdoes Ses Product Sales 3777 188 3968 Products Sales Software Sales 1074 36) 18.9 Total Sales 59
Slide 32: 29 | Shareholder Letter / Q3 2022
29 | Shareholder Letter / Q3 2022
Slide 33: Historical to current segment presentation adjustments
Historical Preseatation Adjustments Corrent Presentation Professional, Maintenance ‘and Support Software Historical Segment Amonat | “Services __Liceases_| Amount _Updated Segment Serer Sales S140 230 1.7220 Senies Sle Prods Ses toe2.0 616] 11286 Prodice See Sete Ses 336 e730) wo Tota Sales 32884 5
Slide 34: 30 | Shareholder Letter / Q3 2022
30 | Shareholder Letter / Q3 2022