Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q1 2023 Earnings Presentation
17 slides from Diebold Nixdorf's earnings presentation, May 3, 2023
Slide 1: First Quarter 2023 Earnings
First Quarter 2023 Earnings May 3, 2023
Slide 2: Forward-looking statements
This press release 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: Q1 highlights: strong demand and operational execution
Consistently strong market demand for our solutions in Banking and Retail driven by self-service and automation growth drivers Focus on operational execution resulted in meaningful year-over-year improvements in revenue and profitability Ongoing conversations with banking and lending partners to add
Slide 5: Priorities: deleveraging and free cash flow conversion
Companywide focus on deleveraging and free cash flow conversion through the following priorities: Fortifying the Balance Sheet & Adopting a Continuous Improvement Executing on Accelerate Deleveraging Mindset Future Path Forward Optimize working capital and Continue to execute on full-year unit Capit
Slide 6: Q1 financial results: revenue, margin, opex, adjusted EBITDA
Revenue ($M)(1) Gross Margin (%)(2) Operating Expense ($M)(2) Adjusted EBITDA ($M)(3) + 8.7% in CC exc. divestitures Favorable +190 bps $28M YoY +$49M YoY $824 YoY $853 24.5% $187 $64 $785 22.6% $159 $15 Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Banking Segment Overview Retail Segment Overview
Slide 7: Quarterly ATM and SCO factory shipments
Quarterly ATM Factory Shipments Quarterly SCO Factory Shipments(1) (units in thousands) (units in thousands) 16.0 14.8 14.1 10.7 12.8 12.5 12.0 7.8 7.8 6.7 5.7 4.9 (2) Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23E Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23E (2) • Projecting 1H‘23 ATM shipments of 30.8K units, which
Slide 8: Banking Segment Revenue and Gross Profit
Banking Segment Revenue ($M) Banking Segment Gross Profit ($M) YoY YoY Growth Growth in CC(1) $689 $590 $580 $593 5.4% 7.9% $563 $294 $148 $156 $201 $144 $141 $179 $200 $212 18.3% 21.7% $126 $30 $26 $38 $13 $28 Revenue Gross Profit $384 $389 $395 $113 $118 $118 $118 $113 $380 $381 (0.7)% 1.5% Q1-22
Slide 9: Retail Segment Revenue and Gross Profit
Retail Segment Revenue ($M)(1) Retail Segment Gross Profit ($M)(1) YoY YoY Growth Growth in CC(3) $275 $262 $256 $260 (0.5)% 4.9% $68 $69 $225 $60 $62 $56 $122 $121 $140 $127 $23 $27 4.6% 9.3% $19 $21 $14 $95 Gross Profit Revenue $41 $41 $42 $45 $42 $140 $135 $130 $135 $133 (4.9)% 1.0% Q1-22 Q2-22 Q
Slide 10: Quarterly Free Cash Flow and Cash Availability
Quarterly Free Cash Flow ($M)(1) Cash and Cash Availability ($M) $84 12/31/22 03/31/23 Cash, Cash Equivalents and Restricted Cash $319 $246 Levered Additional Cash Availability from: Free Cash ($89) ($101) Revolving Credit Facility -- -- flow Short-term Investments 25 17 ($180) Total Cash and Cash A
Slide 11: Full Year 2023 Outlook
Full Year Full Year Key Details 2022 Actuals 2023 Outlook • Factory confirmed orders for the year of 88% for ATM units and 68% ATM: 49k ATM: ~60k for SCO units support revenue unit outlook Revenue Units SCO: 22k SCO: ~35k • Potential mix shift developing in Retail with more SCO units EPOS: 126k EPOS
Slide 12: Capitalizing on strong start and market-driven momentum
Work to capitalize on strong start and market-driven momentum Continued execution of key priorities and delivering to our customers Finalization of 2023 lender conversations to address short and long-term liquidity and capital structure DIEBOLD NIXDORF | 12
Slide 13: Supplemental Slides
Supplemental Slides DIEBOLD NIXDORF | 13
Slide 14: Reconciliation of Segment Revenue
Reconciliation of Segment Revenue po | 0122 FB variance re Banking Revenue (GAAP) 592.9 562.7 30.2 5.4% FX Impact - (13.1) Held for sale non-core European retail business - - Divestitures and Related Actions - - Russia / Ukraine Impact - (5.9) Banking Adjusted Revenue (Non-GAAP) 592.9 543.7 49.2 9.0
Slide 15: Non-GAAP measures notes
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 Adjusted EBITDA, adjusted earnings per share, free cash flow (use) an
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
Slide 17: 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