Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q1 2025 Earnings Presentation
27 slides from Diebold Nixdorf's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025 Earnings
First Quarter 2025 Earnings Performance Summary Update – May 7, 2025
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 1 Solid start to the year positions the company well for 2025 – maintain & monitor financial outlook 2 Robust demand for our market-leading technology led to a 36% YoY increase in new orders into our product backlog Implementing Continuous Improvement and lean principles contributed to
Slide 5: Diebold Nixdorf: Investment Thesis
Diebold Nixdorf: Investment Thesis Delivering value creation across three key drivers as set out at our February 2025 Investor Day DN is a global leader providing mission critical hardware, service and software transforming how people bank and shop 1 Capturing Secular Tailwinds: Large & growing TAM
Slide 6: Year-to-Date Progress On Our Growth Strategy
Year-to-Date Progress On Our Growth Strategy Achieving numerous milestones against the priorities we outlined at Investor Day with significant runway ahead Banking Retail Branch Automation & Fit-for-purpose Devices North America Expansion & AI-driven Self Service • Developing strong customer pipelin
Slide 7: Lean Early Impact on Service Operations
Lean Early Impact on Service Operations Conducted Kaizen events in Canada, US, Mexico, Brazil, Germany and India impacting both product and service SERVICE OBJECTIVES KEY PROGRESS Improve safety of employees Safety improvements implemented Improved service force productivity & utilization Reduce cal
Slide 8: Five Quarter Financial Trend
Five Quarter Financial Trend 1Q25 results in-line with expectations Total Revenue ($M) Total Gross Margin (%)(1) Operating Expense ($M)(1)(2) Service Product $989 $897 $940 $927 26.1% $841 26.0% $159 $159 $159 $166 $165 25.1% 25.3% $399 $385 $446 23.9% $372 $333 $525 $541 $542 $543 $508 (1) Q1-24 Q2
Slide 9: Five Quarter Financial Trend
Five Quarter Financial Trend Remain committed to strengthening profitability and improving free cash flow Operating Profit ($M)(1) Adjusted EBITDA ($M) / Free Cash Flow ($M)(1) Adjusted EBITDA Margin(1) $118 $186 $119 $112 $85 $83 $103 $87 $66 $71 $48 11.5% 12.6% 12.7% 11.4% 10.4% $(36) $(16) $(25)
Slide 10: Banking
Banking Banking continues to deliver solid quarterly results – accelerating cash recycler adoption and branch automation solutions Revenue ($M) (1) Gross Profit ($M) / Gross Margin (%) (1) Service Product YoY in CC(2) $707 $691 $716 $649 $629 Flat $185 $184 $306 $290 $317 $165 $171 $262 $247 (2.8)%
Slide 11: Retail
Retail Signs of stabilization pointing towards 2H25 recovery Revenue ($M) (1) Gross Profit ($M) / Gross Margin (%) (1) Service Product YoY in CC(2) $273 $248 $236 $232 $212 (12.4)% $128 $66 $110 $93 $95 $60 $60 $59 $85 (19.7)% $52 $138 $139 $141 $144 $126 24.2% 25.6% 24.8% 24.1% 24.4% (6.7)% Q1-24 Q
Slide 12: Framing Tariff Policy Risk
Framing Tariff Policy Risk Under current conditions, estimated gross cost impact is ~$20M and initial line of sight to mitigate up to ~50% Estimated Tariff Impact Actions to Manage Dynamic Environment • Current estimated gross cost impact of tariff policy is • DN framework prioritizes addressing hig
Slide 13: 2025 Guidance
2025 Guidance Reiterating 2025 guidance – expectations remain with existing outlook ranges including potential impact of current tariffs FY24 Metrics FY25 Outlook Key Details Actuals • Banking and Retail up low-single digits YoY in constant currency with Retail recovery in 2H25 Total Flat to up low-
Slide 14: 2025 Free Cash Flow
2025 Free Cash Flow Strong line of sight to significant improvement in Free Cash Flow – targeting $190M - $210M of Free Cash Flow in 2025 40%+ FCF Conversion • On track to deliver full year 2025 guidance with positive Free Cash Flow in the first quarter ~$20M ~$30M(1) ~$200M(1) • Debt refinancing co
Slide 15: Fortress Balance Sheet
Fortress Balance Sheet Benefitting from reduced leverage and bolstered liquidity position of ~$635M – supports capital allocation priorities Revolving Credit Facility Cash Balance Net Leverage(1) $310M $328M 1.5x No Borrowings Cash & Short-Term Net Debt / TTM Adjusted Outstanding Investments EBITDA
Slide 16: Substantial Value Creation Opportunity Ahead
Substantial Value Creation Opportunity Ahead DN is best positioned to optimize end-to-end branch cash ecosystem – steady demand for DN Series 1 ATMs and growing demand for teller cash recyclers Strong value proposition for European and North American retail customers based on our 2 AI-driven Smart V
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 | DIEBOLD NIXDORF
Slide 19: Financial Condition
Financial Condition Strong free cash flow(1) performance – $6M source in 1Q25 – improving on historical quarterly seasonality ($ in millions) Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Adjusted EBITDA(1) $103 $119 $118 $112 $87 Overview Working Capital source (use) $20 $(66) $(57) $147 $26 • YoY improvement in F
Slide 20: Reconciliation of GAAP results to Non-GAAP results – Q1-25 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q1-25 ($M) Notes for Non-GAAP Measures To supplement our condensed consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GA
Slide 21: Reconciliation of GAAP results to Non-GAAP results – Q4-24 & Q3-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q4-24 & Q3-24 ($M) Notes for Non-GAAP Measures To supplement our consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP
Slide 22: Reconciliation of GAAP results to Non-GAAP results – Q2-24 & Q1-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q2-24 & Q1-24 ($M) Notes for Non-GAAP Measures To supplement our consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP
Slide 23: Reconciliation of free cash flow - Quarter Trend ($M)
Reconciliation of free cash flow - Quarter Trend ($M) ($ in millions) Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Q1-25 Net cash provided (used) by operating activities $ (23.5) $ (8.0) $ (15.5) $ 196.2 $ 149.2 $ 15.7 Capital expenditures (6.7) (1.7) (3.8) (5.2) (17.4) (7.9) Capitalized software development (6.2)
Slide 24: 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) TTM ended Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Q1-25 Q1-25 Net loss $ (14.0) $ 14.8 $ (21.7) $ 6.4 $ (14.5) $ (7.5) $ (8.0) Income tax expense (benefit) (3.1) 32.0 29.9 5.5 64.3 (2.2) 65.2 Interest income (4.2) (3.0) (2.9)
Slide 25: Financial Results of Segments – Quarter Trend ($M)
Financial Results of Segments – Quarter Trend ($M) Gross Margin by Segment - Unaudited Three months ended Twelve months ended Three months ended ($ in millions) March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 March 31, 2025 Non-GAAP Non-GAAP Non-GAAP Non-GAAP Non-
Slide 26: Financial Results of Segments – 1Q25 Revenue ($M) in Constant Currency
Financial Results of Segments – 1Q25 Revenue ($M) in Constant Currency * * 26 | DIEBOLD NIXDORF
Slide 27: Net Debt Summary ($M) and Net Leverage
Net Debt Summary ($M) and Net Leverage * * Q4-24 Q1-25 Cash, cash equivalents, restricted cash and short-term investments $ 328.2 $ 328.3 Debt instruments (966.0) (966.0) Net debt (637.8) (637.7) Adjusted EBITDA (trailing twelve months)* $ 452.2 $ 436.1 Net Leverage (Adjusted EBITDA TTM / Net Debt)*