Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Baird 2024 Global Industrials Conference
28 slides from Diebold Nixdorf's conference presentation, Nov 14, 2024
Slide 1: Diebold Nixdorf Baird Global Industrials Conference
Diebold Nixdorf Baird Global Industrials Conference Octavio Marquez, CEO Tom Timko, CFO
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 federal securities law. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of
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: Global leader in highly attractive banking and retail end-markets
Global leader in highly attractive banking and retail end-markets Banking - Cash machines & services Retail - Checkout solutions & services • ~$2.7 billion in annual revenue(1) • ~$1.1 billion in revenue(1) • #1 in ATMs installed globally(2) 29% • #1 in EPOS & self-checkout deliveries in $3.8B Europ
Slide 5: Banking strength driven by adoption of DN Series recyclers supporting branch transformation
Banking strength driven by adoption of DN Series® recyclers supporting branch transformation Revenue by Type Revenue by Region APMEA & Other 18% North America 37% Product $2.7B 40% $2.7B 2023 Revenue 2023 Revenue Europe 24% Service 60% Latin America 21% 4
Slide 6: Retail is enhancing consumer checkout journeys and store productivity with self-service and automation
Retail is enhancing consumer checkout journeys and store productivity with self-service and automation Revenue by Type Revenue by Region Americas 9% Service 52% APMEA & Other 11% Product $1.1B $1.1B 48% 2023 Revenue 2023 Revenue Europe 80% 5
Slide 7: Sustained momentum and stable growth across banking and retail sectors
Sustained momentum and stable growth across banking and retail sectors Banking Retail Stable installed base Faster growing self-checkout solutions Global ATM installed base (000)(1) Global self-checkout installed base (000)(3) Stable 2,075 2,073 +8% CAGR 1,122 687 2023 2024E 2025E 2026E 2027E 2028E
Slide 8: Enduring demand for cash and physical transactions
Enduring demand for cash and physical transactions Currency in circulation continues to increase Cash persists due to culture, security and convenience Volume of currency in circulation ($B, eoy) US Consumer cash holdings over time (USD) 2,500 600 491 Average on 2,000 500 443 person holdings +7% 402
Slide 9: Consistent operational execution with continuous improvement journey
Consistent operational execution with continuous improvement journey Trailing 12-month Revenue(1) Trend ($M) +3.3% $3,679 $3,802 3Q23(2) 4Q23 1Q24 2Q24 3Q24 Sequential Gross Margin(1) Trend 340 bps 27.9% 24.5% (2) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 (1) Represents a non-GAAP metric. Please refer to s
Slide 10: Lean manufacturing driving supply chain transformation
Lean manufacturing driving supply chain transformation Building a Lean Operating System enabled by culture, competency and commitment to drive operational excellence and transformation 9
Slide 11: DN Investment Highlights
DN Investment Highlights Industry-leading solutions winning in the market with highly attractive customer base 1 of banks and retailers 2 Market leader in Banking and Retail innovation and automation 3 Initial stages of Lean journey driving significant profitability improvement and expanding efforts
Slide 12: Financial Performance
Financial Performance 1 Transforming the Way People Bande and Shap
Slide 13: YTD Q3 2024 Consolidated Financial Summary
YTD Q3 2024 Consolidated Financial Summary Strong year-to-date execution with revenue growth, margin expansion and improved free cash flow performance YTD Q3-24 Overview Non-GAAP Summary(1) YTD YTD Change ($ in millions) Q3 2023(3) Q3 2024 YoY • YTD revenue growth driven by strong growth in Banking
Slide 14: 2024 Performance Outlook and 2025 Framework
2024 Performance Outlook and 2025 Framework Expect to achieve FY24 Adjusted EBITDA of ~$450M reflecting stronger profitability driven by impact of our lean manufacturing and continuous improvement actions FY23 Previous Key Details Actuals(1) FY24 Outlook • Incorporates continued strength in Banking
Slide 15: Building momentum going into 2025
Building momentum going into 2025 Growing towards our targets to generate significantly higher free cash flow conversion Growing and Linearizing Improving Profitability and Growing Strengthening Free Cash Total Revenue ($B) Adjusted EBITDA ($M)(2),(3) Flow Conversion(2),(3) LSD Growth MSD / $3.8 Fla
Slide 16: Long-Term Foundational Building Blocks
Long-Term Foundational Building Blocks Implementing best practices from investment grade companies and creating value for shareholders Improve capital Drive more linear and Eliminate spend and Implement balanced structure and fortify stronger free cash flow complexity related to capital allocation b
Slide 17: Thank You | Q&A
Pa Diebold Nixdorf Thank You | Q&A Transforming. the Way Praple Bank and Shep
Slide 18: Supplemental Slides
Supplemental Slides 17
Slide 19: Reconciliation of GAAP results to Non-GAAP results – Q3-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q3-24 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees tran
Slide 20: Reconciliation of GAAP results to Non-GAAP results – YTD Q3-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – YTD Q3-24 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees
Slide 21: Reconciliation of GAAP results to Non-GAAP results – YTD Q3-23 ($M)
Reconciliation of GAAP results to Non-GAAP results – YTD Q3-23 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees
Slide 22: Reconciliation of GAAP results to Non-GAAP results – Q1-23 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q1-23 ($M) To supplement our condensed consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non- GAAP results, EBITDA and Adju
Slide 23: Reconciliation of free cash flow – Year-to-date ($M)
Reconciliation of free cash flow – Year-to-date ($M) * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having implemented Fresh Start Accounting in the
Slide 24: Reconciliation of free cash flow – 2023 and 2022 ($M)
Reconciliation of free cash flow – 2023 and 2022 ($M) * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having implemented Fresh Start Accounting in the
Slide 25: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – YTD ($M)
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – YTD ($M) The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Adjusted EBITDA is EBITDA excluding the effects of the following items: share-based
Slide 26: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – 2022 & 2023
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – 2022 & 2023 ($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: sha
Slide 27: Reconciliation of GAAP to non-GAAP revenue – Trailing Twelve Month
Reconciliation of GAAP to non-GAAP revenue – Trailing Twelve Month Held for sale business are the results of a formerly majority-owned business that the Company sold in Q3 2023 that are excluded from the metrics used to evaluate the core business and assign resources. Legal deal matters primarily re
Slide 28: Net Debt Summary ($M) and Net Leverage
Net Debt Summary ($M) and Net Leverage * * * 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. * - Combined Results for the reported period, is a Non-G
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