Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q4 2024 Earnings Presentation
31 slides from Diebold Nixdorf's earnings presentation, Feb 12, 2025
Slide 1: Fourth Quarter 2024 Earnings
Fourth Quarter 2024 Earnings Performance Summary Update February 12, 2025 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 information presented in accordance with GAAP, the Company considers certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results, Non-GAAP operating profit margin, adjust
Slide 4: Key Takeaways
Key Takeaways Strong Adjusted EBITDA of $452M(1) above high-end of guidance range and record free cash 1 flow generation of $109M(1) 2 Focusing on Lean operating principles contributed to gross margin(1) expansion of 300 bps for the year compared to 4Q23 3 Successful refinancing fortifies financial
Slide 5: Milestone Year Positioning DN for Long-term Success
Milestone Year Positioning DN for Long-term Success Attractive End Market Tailwinds Safety, Delivery, Quality & Cost • Completed our 200,000 DN Series ATM • Accelerated flywheel of continuous shipment - ~75% of installed base to go improvement • Driving automation and efficiency across • Implementin
Slide 6: Strong Progress in Manufacturing and Extending Lean to Service Operations
Strong Progress in Manufacturing and Extending Lean to Service Operations Building a Lean operating system enabled by culture, competency and commitment to drive operational excellence and transformation 2024 Manufacturing Improvements 45 kaizens conducted in manufacturing, supply chain & logistics
Slide 7: Changes in Non-GAAP Financial Presentation
Changes in Non-GAAP Financial Presentation Changes in presentation to address 1) combination of successor and predecessor periods and 2) treatment of Fresh Start Non-GAAP adjustments – changes in financial presentation reflected throughout the schedules Predecessor & Successor Combination Fresh Star
Slide 8: Five Quarter Financial Trend
Five Quarter Financial Trend Strong progress over the last 18 months to improve financial performance Total Revenue ($M)(1) Total Gross Margin (%)(1) Operating Expense ($M)(1) Service Product $3,753 $643 26.0% 26.1% 25.3% 25.1% 23.9% $1,038 22.3% $940 $927 $989 $159 $159 $159 $166 $897 $1,602 $147 $
Slide 9: Five Quarter Financial Trend
Five Quarter Financial Trend Remain committed to strengthening profitability and free cash flow Operating Profit ($M)(1) Adjusted EBITDA ($M) / Adjusted Free Cash Flow ($M)(1) EBITDA Margin(1) $305 $186 $452 $150 $84 $85 $83 $123 $119 $118 $109 $71 $103 $112 $66 12.1% 11.9% 11.5% 12.6% 12.7% 11.4% $
Slide 10: Banking
Banking Solid year for Banking with improving revenue and profitability trends – strong refresh activity and branch automation solutions Revenue ($M) (1) Q4 Seq. Gross Profit ($M) / Gross Margin (%) (1) Growth Service Product $2,763 3.6% $705 $750 $716 $1,175 $185 $184 $707 $691 $649 9.3% $171 $165
Slide 11: Retail
Retail Macro environment impacted 2024 results, however, seeing signs of stabilization pointing towards second half of 2025 recovery Revenue ($M) (1) Q4 Seq. Gross Profit ($M) / Gross Margin (%) (1) Growth Service Product $988 15.7% $244 $288 $273 $248 $425 34.7% $232 $236 $134 $66 $66 $110 $128 $60
Slide 12: 2025 Guidance
2025 Guidance Targeting meaningful growth in adjusted EBITDA and free cash flow in 2025 FY24 Metrics FY25 Outlook Key Details Actuals • Banking and Retail up low-single digits YoY in constant currency with Retail acceleration in 2H Total Flat to up low- $3.75B • Includes significant 3% - 4% (~$115M)
Slide 13: 2025 Free Cash Flow Outlook
2025 Free Cash Flow Outlook(1)(2) Strong line of sight to significant improvement in Free Cash Flow – targeting $190M - $210M of Free Cash Flow in 2025 +40% 2025 Free Cash Flow Highlights FCF Conversion • Debt refinancing completed in December 2024 driving ~$20M ~$70M annual interest expense savings
Slide 14: Fortress Balance Sheet
Fortress Balance Sheet Reducing leverage and bolstering liquidity position throughout 2024 ~$1.6 billion market cap (YE24) Total Liquidity Cash Balance Net Leverage(1) $60 >$600M $328M 1.4x $50 Diebold Nixdorf share price ($) Cash & Revolving Cash & Short Term Net Debt / TTM Credit Facility Investme
Slide 15: Capital Allocation Framework
Capital Allocation Framework Disciplined capital allocation framework focused maintaining fortress balance sheet and maximizing shareholder returns 1 2 3 4 Fortress Balance Sheet Business Investment Return of Capital Disciplined M&A • ~1.5x Net Debt Leverage • Capital light model: to Shareholders •
Slide 16: Substantial Value Creation Opportunity Ahead
Substantial Value Creation Opportunity Ahead Steady global demand for DN Series ATMs and optimizing end-to-end branch cash 1 ecosystem – DN is best positioned in the market to drive this efficiency 2 Continue to drive Lean journey by expanding efforts throughout the company with a focus on improving
Slide 17: Questions and Answer Session
Questions and Answer Session Octavio Marquez Tom Timko President & Executive Vice President Chief Executive Officer & Chief Financial Officer
Slide 18: Supplemental Slides
Supplemental Slides 18
Slide 19: Financial Condition
Financial Condition Solid free cash flow(1) performance – $109M for the year and $186M in 4Q24 – enabling return of capital to shareholders ($ in millions) Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Adjusted EBITDA(1) $144 $103 $119 $118 $112 Overview Working Capital source (use) $99 $20 $(66) $(57) $147 Account
Slide 20: Reconciliation of GAAP results to Non-GAAP results – FY24 ($M)
Reconciliation of GAAP results to Non-GAAP results – FY24 ($M) Notes for Non-GAAP Measures To supplement our consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results,
Slide 21: Reconciliation of GAAP results to Non-GAAP results – Q4-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q4-24 ($M) Notes for Non-GAAP Measures To supplement our consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results
Slide 22: Reconciliation of GAAP results to Non-GAAP results – Q3-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q3-24 ($M) Notes for Non-GAAP Measures To supplement our consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results
Slide 23: Reconciliation of GAAP results to Non-GAAP results – Q2-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q2-24 ($M) Notes for Non-GAAP Measures To supplement our consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results
Slide 24: Reconciliation of GAAP results to Non-GAAP results – Q1-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q1-24 ($M) Notes for Non-GAAP Measures To supplement our consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results
Slide 25: Reconciliation of GAAP results to Non-GAAP results – Q4-23 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q4-23 ($M) Notes for Non-GAAP Measures To supplement our consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results
Slide 26: Reconciliation of free cash flow - Quarter Trend ($M)
Reconciliation of free cash flow - Quarter Trend ($M) Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Net cash provided (used) by operating activities $ 162.8 $ (23.5) $ (8.0) $ (15.5) $ 196.2 $ 149.2 Capital expenditures (6.3) (6.7) (1.7) (3.8) (5.2) (17.4) Capitalized software development (6.1) (6.2) (6.4) (5
Slide 27: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Quarter Trend ($M)
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Quarter Trend ($M) The company defines EBITDA as net income (loss) excluding income tax benefit (expense), net interest expense, and depreciation and amortization expense. Adjusted EBITDA is EBITDA excluding the effects of the followi
Slide 28: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – FY24 ($M)
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – FY24 ($M) The company defines EBITDA as net income (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:
Slide 29: Financial Results of Segments – FY24, 4Q24, 4Q23 ($M)
Financial Results of Segments – FY24, 4Q24, 4Q23 ($M) 29
Slide 30: Financial Results of Segments – 1Q24, 2Q24, 3Q24 ($M)
Financial Results of Segments – 1Q24, 2Q24, 3Q24 ($M) 30
Slide 31: Net Debt Summary ($M) and Net Leverage
Net Debt Summary ($M) and Net Leverage * * Q4-24 Cash, cash equivalents, restricted cash and short-term investments $ 328.2 Debt instruments (966.0) Net debt (637.8) Adjusted EBITDA (trailing twelve months)* $ 452.2 Net Leverage (Adjusted EBITDA TTM / Net Debt)* 1.4 We believe that cash, cash equiva