Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q2 2023 Earnings Presentation
16 slides from Diebold Nixdorf's earnings presentation, Aug 9, 2023
Slide 1: Performance Summary Update
Performance Summary Update August 9, 2023
Slide 2: Forward-looking statements
This presentation contains 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 and are not guarantees of fut
Slide 3: Non-GAAP financial measures
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 cash flow (use) and unlevered free ca
Slide 4: Q2 highlights and restructuring emergence
Completed financial restructuring and expect to emerge from the related proceedings on Friday, Aug. 11 Anticipates shareholders can trade the Company’s newly issued common stock on Monday, Aug. 14 at the market open under the symbol “DBD” Remained focused on operational execution during the quarter
Slide 5: Legacy vs. Post-Emergence Diebold Nixdorf
Diebold Nixdorf has a “Legacy” Diebold Nixdorf “Post-Emergence” Diebold Nixdorf strong foundation with market-leading Revamped balance sheet, cash flow profile, and supply chain… technology, a leading market position, and Materially De-levered ~$2.6 billion gross debt $1.25 billion gross debt(1) str
Slide 6: Highlights of Exit Financing
Pre-Petition Capital Structure ($M) Post-Petition Capital Structure ($M) Highlights of Exit Financing $2,139 • Matures: 5 years from exit date • Pricing: SOFR + 7.5% • Call Protection: • 1.00% if prepaid using proceeds of indebtedness incurred under the Accordian Basket • 5.00% if prepaid using proc
Slide 7: Fortifying the Balance Sheet, Continuous Improvement, Path Forward
Fortifying the Balance Adopting a Continuous Executing on Sheet and Deleveraging Improvement Mindset Future Path Forward Reduce debt and leverage levels and Continue driving towards full-year Capitalize on long-term growth optimize working capital unit targets: drivers around self-service and • ATM
Slide 8: Banking Segment Overview
Revenue ($M)(1) Gross Profit ($M)(1) Adjusted EBITDA ($M)(2) Adjusted EBITDA Margin (%)(2) +$71M YoY +$18M YoY +$13M YoY +8.4% Favorable +8.6% +18.9% +80 bps $917 $84 $228 9.2% $846 $71 $210 8.4% Q2-22 Q2-23 Q2-22 Q2-23 Q2-22 Q2-23 Q2-22 Q2-23 Banking Segment Overview Retail Segment Overview APAC &
Slide 9: Quarterly ATM and SCO Factory Shipments
Quarterly ATM Factory Shipments Quarterly SCO Factory Shipments(1) (units in thousands) (units in thousands) 16.5 14.8 14.9 12.8 11.0 12.0 12.5 7.8 7.8 7.8 5.7 4.9 (2) (2) Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23E Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23E • Q2-23 ATM shipments of 14.9k units reflects a YoY in
Slide 10: Banking Segment Revenue and Gross Profit
Banking Segment Revenue ($M) Banking Segment Gross Profit ($M) YoY Growth Service Product $689 Service Product $665 12.7% $590 $580 $593 $165 $148 $156 $144 $141 $294 $265 31.8% $201 $200 $212 $30 $26 $38 $28 $53 Revenue Gross Profit $118 $118 $118 $113 $112 $389 $380 $395 $381 $400 2.8% Q2-22 Q3-22
Slide 11: Retail Segment Revenue and Gross Profit
Retail Segment Revenue ($M)(1) Retail Segment Gross Profit ($M)(1) YoY Service Product Growth Service Product $275 $260 $256 $252 (1.3)% $225 $68 $69 $62 $63 $140 $56 $121 $127 $117 (2.8)% $23 $27 $95 $21 $14 $21 Revenue Gross Profit $45 $41 $42 $42 $42 $135 $130 $135 $133 $135 Flat Q2-22 Q3-22 Q4-2
Slide 12: Supplemental Slides
Supplemental Slides
Slide 13: Restructuring and transition notes
Restructuring and transition - personnel expenses incurred during 2023 and 2022 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees transitioning out of the organization. Costs of thirdparties assisti
Slide 14: Reconciliation of GAAP results to Non-GAAP Results — YTD Q2-23
Reconciliation of GAAP results to Non-GAAP Results — YTD Q2-23 ($M) YTD 6/30/2023 YTD 6/30/2022 Net Gross %of %of Net Gross % of % of Sales Profit Sales OPEX OP Sales Sales Profit Sales OPEX OP Sales GAAP results $1,780.3 $434.5 24.4% $440.5 $ (6.0) (0.3)% $1,681.5 $346.1 20.6 % $521.0 $(174.9) (10.
Slide 15: Free cash flow definition
We consider free cash flow (use) to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the purchase of property and equipment and capitalized software development, changes in cash of assets held for sale
Slide 16: 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. Adjusted EBITDA is EBITDA excluding the effects of the following items: share-based compensation, amortization of cloud-based software implementation costs, f