Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q2 2024 Earnings Presentation
26 slides from Diebold Nixdorf's earnings presentation, Aug 7, 2024
Slide 1: Second Quarter 2024 Earnings Performance Summary Update
Second Quarter 2024 Earnings Performance Summary Update August 7, 2024 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation and the exhibits hereto 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 for
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, adjusted diluted earnings per share, fre
Slide 4: Second Quarter 2024 Takeaways
Second Quarter 2024 Takeaways 1 Strong second quarter performance driven by improved operational execution 2 Delivering higher profitability with Lean & Continuous Improvement 3 Record first half free cash flow(1) performance with more linear results 4 Updating 2024 outlook to reflect higher profita
Slide 5: Diebold Nixdorf Continuous Improvement Journey
Diebold Nixdorf Continuous Improvement Journey Signs of accelerating the flywheel in second quarter results; remain focused on continuous improvement journey Overview • Continue to invest in our people to enable leaders to create People leading-edge products and deliver world-class service to our Pr
Slide 6: Supply Chain Transformation – Lean Manufacturing
Supply Chain Transformation – Lean Manufacturing Driving results with Lean and Continuous Improvement; ATM lock assembly example North Canton Manufacturing Facility Supply Chain Transformation Update • Prioritizing safety, quality, delivery, and cost • 7 Kaizen events completed in North Canton facil
Slide 7: Q2 2024 Consolidated Financial Summary
Q2 2024 Consolidated Financial Summary Another solid quarter of operational execution; remaining focused on continuous improvement journey Q2-24 Overview Non-GAAP Summary(1) Change Q2 2023 Q2 2024 ($ in millions) YoY • Banking driving disciplined profitable revenue growth Total Revenue $917 $940 2.4
Slide 8: YTD Q2 2024 Consolidated Financial Summary
YTD Q2 2024 Consolidated Financial Summary Strong 1H24 execution results in raising adjusted EBITDA expectations for remainder of 2024 YTD Q2-24 Overview Non-GAAP Summary(1) YTD YTD Change ($ in millions) Q2 2023 Q2 2024 YoY • Higher revenue and gross margin expansion, combined with disciplined oper
Slide 9: Q2 2024 Banking Financial Performance
Q2 2024 Banking Financial Performance Solid quarter for Banking with strength in product and continued signs of service performance improvement Banking Segment Revenue ($M) Banking Segment Gross Profit ($M) YoY Growth Service Product $750 $707 6.4% $665 $665 $649 $202 $198 $350 $306 $181 $265 $264 $
Slide 10: Q2 2024 Retail Financial Performance
Q2 2024 Retail Financial Performance(1) Mixed Retail performance with positive trends in service offset by market headwinds in product Retail Segment Revenue ($M) Retail Segment Gross Profit ($M) Service Product YoY Growth $278 $288 $252 $248 $232 (8.0)% $75 $74 $136 $134 Gross Profit $65 $117 $110
Slide 11: Q2 2024 Financial Condition Summary
Q2 2024 Financial Condition Summary Continue to focus on cash generation for the benefit of all our stakeholders ($ in millions) Q2-23 Q3-23(1) Q4-23 Q1-24 Q2-24 Overview Adjusted EBITDA(2) $84 $109 $144 $103 $119 Working Capital source (use) $(239) $(56) $99 $20 $(66) • Improved linearity driving s
Slide 12: 2024 Performance Outlook
2024 Performance Outlook Updating 2024 outlook to reflect higher profitability driven by impact of our continuous improvement actions, represents meaningful improvement compared to the prior year as the company improves operational execution FY23 Prior Revised Key Details Actuals(1) FY24 Outlook FY2
Slide 13: Compelling Investment Thesis
Compelling Investment Thesis 1 Healthy product backlog combined with recurring service revenue 2 Accelerating margin expansion and maintaining operating expense discipline 3 Executing to improve free cash flow generation 4 Building a value-creating capital allocation plan for our customers and share
Slide 14: Supplemental Slides
Supplemental Slides 14
Slide 15: Second Quarter 2024 Summary
Second Quarter 2024 Summary Strong Second Quarter Financial Results(1) Winning with Customers Raising FY24 Guidance • Higher revenue and gross margin expansion, • Product backlog remains above $1.0B combined with disciplined operating expense, flowing • Banks around the globe continue to upgrade and
Slide 16: Reconciliation of GAAP results to Non-GAAP results – Q2-24
Reconciliation of GAAP results to Non-GAAP results – Q2-24 ($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 17: Reconciliation of GAAP results to Non-GAAP results – YTD Q2-24
Reconciliation of GAAP results to Non-GAAP results – YTD Q2-24 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees
Slide 18: Reconciliation of GAAP results to Non-GAAP results – Q2-23
Reconciliation of GAAP results to Non-GAAP results – Q2-23 ($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 tran
Slide 19: Reconciliation of GAAP results to Non-GAAP results – YTD Q2-23
Reconciliation of GAAP results to Non-GAAP results – YTD Q2-23 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees
Slide 20: Reconciliation of free cash flow - Quarter Trend
Reconciliation of free cash flow - Quarter Trend ($M) Quarter Ended Q2-23 Q3-23* Q4-23 Q1-24 Q2-24 Net cash provided (used) by operating activities $ (241.7) $ (82.2) $ 162.8 $ (23.4) $ (8.0) Excluding the impact of changes in cash of assets held for sale (0.7) 0.7 - - - Capital expenditures (5.5) (
Slide 21: Reconciliation of free cash flow – Year-to-date
Reconciliation of free cash flow – Year-to-date ($M) * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having implemented Fresh Start Accounting in the
Slide 22: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Quarter Trend
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Quarter Trend ($M) Quarter Ended Q2-23 Q3-23* Q4-23 Q1-24 Q2-24 Net loss $ (677.3) $ 19.4 $ 27.5 $ (14.0) $ 14.8 Impact of Fresh Start Accounting - - 20.6 - - Income tax expense (benefit) (24.8) (12.4) (1.5) (3.1) 32.0 Interest income
Slide 23: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – YTD
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 24: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Trailing Twelve Month
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Trailing Twelve Month Trailing Twelve Month (TTM) Quarter End Q2-23 Q3-23* Q4-23* Q1-24* Q2-24* Net loss $ (991.4) $ 1,179.6 $ 1,369.6 $ (644.4) $ 47.7 Impact of Fresh Start Accounting - 14.6 32.5 20.6 20.6 Income tax expense (benefit
Slide 25: Net Debt Summary and Net Leverage
Net Debt Summary ($M) and Net Leverage * * Quarter Ended Q2-23 Q3-23* Q4-23 Q1-24 Q2-24 Cash, cash equivalents, restricted cash and short-term investments $ 552.8 $ 456.9 $ 605.7 $ 407.3 $ 368.8 Cash included in assets held for sale 0.2 - - - - Debt instruments (3,416.6) (1,258.2) (1,252.7) (1,110.2
Slide 26: Q2 2024 Financial Condition Summary – Components of Other Cash Flow
Q2 2024 Financial Condition Summary – Components of Other Cash Flow ($M) Quarter Ended Q1-24 Q2-24 Other cash flow (from slide 11) $ (72) $ 21 Net VAT and Sales Tax (35) 0 Payroll and Other Benefits Liabilities (11) 12 Prepaid Expenses (2) 9 Advance Payments for Purchases (2) 10 Deferred Costs (3) 3