Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Debt Investor Presentation (October 2022)
72 slides from Diebold Nixdorf's debt investor presentation, Oct 20, 2022
Slide 1: Lender Presentation October 2022
Exhibit 99.1 Lender Presentation October 2022 PRIVILEGED AND CONFIDENTIAL
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer General: Statements contained in this presentation and the information contained herein (collectively, the “Materials”) describing documents and agreements are summaries only and such summaries are qualified in their entirety by reference to such documents and agreeme
Slide 3: DN Highlights
DN Highlights Diebold Nixdorf, Incorporated (“DN”, “Diebold” or the “Company”) plays a vital role supporting two of the world’s most competitive and demanding industries: Banking and Retail • In Banking, Diebold addresses the demand for cash recyclers as banks rethink their branch footprint and move
Slide 4: DN Highlights (Continued)
DN Highlights (Continued) Strong financial fundamentals: 2022F Secured Revenue Schedule • Net of currency, assets held for sale, and divestitures, we expect revenue to be down Services 95% 5% modestly in 2022 (~1%) • Given the contractual nature of our Services Product 100% business (~$2.1B revenue)
Slide 5: DN Highlights – ESG Program
DN Highlights – ESG Program Diebold recognizes all the ways that the organization touches and impacts the world around it. The ESG program, launched in 2021, has the following components: Connect commerce for customers and global consumers in ways that protect, care for and minimize harm to the envi
Slide 6: Situation Overview
Situation Overview Diebold faced challenges in 2022 (1Q in particular) which negatively affected topline due to unprecedented global supply chain disruptions Furthermore, inflationary pressures hit the Company’s gross and EBITDA margins as a result of increased input costs • To counter some of the c
Slide 7: Table of Contents
Table of Contents Section Company and Industry Overview I Banking Overview IA Retail Overview IB Current Environment & Response II Financial Overview III Appendix IIIA GAAP Reconciliation IIIB PRIVILEGED AND CONFIDENTIAL
Slide 8: Diebold Nixdorf: Pioneers in Connected Commerce
Diebold Nixdorf: Pioneers in Connected Commerce Automate Digitize Transform Banking Solutions Retail Solutions TM ▪ Branch Transformation▪ Consumer Centric ▪ Storevolution▪ Consumer Engagement Experiences & Loyalty ▪ Cash Cycle Management▪ Self-Service ▪ ATMs – Recyclers▪ Fuel and Convenience ▪ End-
Slide 9: Diebold Nixdorf Key Financials
Diebold Nixdorf Key Financials A global FinTech enabling transactions for millions of consumers each day across both the financial and retail industries 900k+ $3.9B 27.4% $416M 100+ ATM 2021 2021 2021 Installed Countries 6 6 Revenue Gross margin Adj. EBITDA Base 6 6 2021 Revenues: $2.7B 2021 Gross P
Slide 10: Operational Highlights by Segment
Operational Highlights by Segment ▪ Customer demand for our solutions remains solid – year-end Banking Backlog (millions) backlog $836M – 14% increase compared to the prior year $603 $732 $836 ▪ Banking backlog trending at highest levels in DN’s history ~40% Banking ▪ Strong backlog will provide ste
Slide 11: Diebold's Strategic Journey
Diebold’s Strategic Journey Streamlining the Business Model to Generate 2018-2020 Strong Free Cash Flow and ROIC Leveraging Our Competitive Differentiation for Growth 2021+ Cost Savings and Efficiency Actions: Simplified Focus on Maximizing Core Business and Focused 2022 Low Capital Intensity Growth
Slide 12: Impact of the Strategic Journey
Impact of the Strategic Journey DN effectively implemented initiatives in the historical period to drive steady improvement in margins and ROIC prior to experiencing supply chain challenges and inflationary headwinds in 2021 and 2022 Adjusted EBITDA & Margin Return on Invested Capital COVID-19 Suppl
Slide 13: Strategic Focus Going Forward
Strategic Focus Going Forward To be the undisputed leader in self-serve technologies and automation by: Accelerating Building Leading the Extending our market share momentum in industry strong growth in Retail Self- evolution Services ATM Checkout through our capability into Products and and next- M
Slide 14: Table of Contents
Table of Contents Section Company and Industry Overview I Banking Overview IA Retail Overview IB Current Environment & Response II Financial Overview III Appendix IIIA GAAP Reconciliation IIIB PRIVILEGED AND CONFIDENTIAL
Slide 15: Banking Segment Snapshot
Banking Segment Snapshot Serving a #1 #1 majority of the ~$2.7 billion #1 in the Automated top 100 ATM multivendor 2 in annual revenue Deposit Terminals Financial in ATMs monitoring Institutions (ADT) installed 5 software installed 4 Globally globally 1 globally Ranked #9 In the 2021 IDC FinTech #1
Slide 16: Overview of Banking Solutions
Overview of Banking Solutions 62% Services Maintenance and Total Implementation Self-Service Branch Lifecycle Managed Services Availability Services Services Fleet Management Management Complete services solution Exceed the demands of an Rely on trusted experts to Achieve the highest possible Contin
Slide 17: Significant Contract Base Opportunity Based On Large Install Base
Significant Contract Base Opportunity Based On Large Install Base 1 From its core installed base of ~800K ATMs , DN provides Product Related Services (PRS) to 1 Bridge from Installed Base to cBase more than 475,000 ATMs globally (Contract Base or cBase) Units in Thousands ~800 Broadly speaking, PRS
Slide 18: Projected cBase by Region
Projected cBase by Region (Units in thousands) North America North America Highest yielding market – 3x – 4x yield of other markets incl. Europe 83 78 74 2022 – 2024: Low • Positive mix shift in favor of US offsets declines in lower margin regions (e.g. APAC) single digit cBase Opportunity to levera
Slide 19: ATM Industry Trends Remain Stable
ATM Industry Trends Remain Stable Global ATM Installed Base Global ATM Shipments ▪ The global ATM total is forecast to decline to 2.9M by 2027 due to a ▪ Nearly 1.8M ATMs are expected to be shipped globally between 2022 and (1.6%) CAGR decline in APAC as a result of rise of mobile and other 2027 wit
Slide 20: Managed Services (MS) Overview
Managed Services (MS) Overview 12 Pillars of Managed Services Optimizing the success and profitability of a self-service channel requires execution across 12 pillars Each pillar requires a specific set of resource capacity, expertise and sophisticated tools, which comes at a high cost when managed b
Slide 21: Vynamic Banking Software Portfolio
Vynamic Banking Software Portfolio DN’s software covers all aspects of end-user interface requirements to maximize consumer experiences and increase self-service satisfaction while providing leading security features Vynamic Connection Vynamic Branch Vynamic Engagement Vynamic Security Points Transf
Slide 22: Table of Contents
Table of Contents Section Company and Industry Overview I Banking Overview IA Retail Overview IB Current Environment & Response II Financial Overview III Appendix IIIA GAAP Reconciliation IIIB PRIVILEGED AND CONFIDENTIAL
Slide 23: Retail Segment Snapshot
Retail Segment Snapshot Self-checkout #2 All installations 8 of 10 Top 25 ~$1.2 across >150 European Global Fortune 500 Retailers in >50 retailers petroleum companies billion are countries are Diebold Nixdorf 2 in annual revenue customers 5 customers #1 #1 >1.3M #1 in Retail in the global Globally i
Slide 24: Retail Segment Suite of Offerings
Retail Segment Suite of Offerings 52% Horizontal Managed Services Managed Mobility Services Managed Self Service Maintenance and Total Implementation Services Empower consumers with an easy Centralized control of mobile Availability Services Services devices Day-to-day operational of the self-servic
Slide 25: EPOS & SCO Expected to Grow
EPOS & SCO Expected to Grow Installed Base Shipments Global EPOS and SCO installed bases are expected to grow gradually to About 12.4M EPOS and SCO units are forecasted to be shipped globally ~17M units as key markets are expected to recover from COVID between 2022 and 2026 as continued momentum fro
Slide 26: SCO Growth Drivers
SCO Growth Drivers DN’s SCO Shipments (2018-2024) (in thousands) 25% 41 36 26 21 16 8 5 2018A 2019A 2020A 2021A 2022F 2023SP 2024SP Market Drivers DN Business Growth Drivers ¾ Adoption of self check-out is growing more rapidly than EPOS, particularly given ¾ Shipped 2021: ~21,000 units COVID-19, wit
Slide 27: EPOS Business Drivers
EPOS Business Drivers DN’s EPOS Shipments (2018-2024) (in thousands) 0.5% 150 144 132 134 134 127 124 2018A 2019A 2020A 2021A 2022F 2023SP 2024SP Market Drivers DN Business Growth Drivers ¾ Store transformation initiatives and adoption of ePOS technology by smaller retailers ¾ Shipped 2021: ~132,000
Slide 28: Drive Growth Via Clear Go-to-Market, Standardized Managed Service Portfolio
Drive Growth Via Clear Go-to-Market, Standardized Managed Service Portfolio 1 Managed Self-Service 1 2 SM ▪ Leverage Self-Service growth dynamics DN AllConnect Services for Retail ▪ Transform existing SCO maintenance contracts into MS ▪ Promote Managed Self Service bundled with DN Series SCO Managed
Slide 29: Vynamic: Enabling Connected Commerce
Vynamic: Enabling Connected Commerce CHECKOUT SOFTWARE CONSUMER CENTRICITY Vynamic Highlights • End-to-end business applications covering front- VYNAMIC CONSUMER ENGAGEMENT VYNAMIC VYNAMIC VYNAMIC and back office needs Consumer rewards and Loyalty CONNECTION POINTS TRANSACTION ENGINE OPERATIONS Worl
Slide 30: Our Customer Base: World's Top Retailers in All Five Core Segments
Our Customer Base: World’s Top Retailers in All Five Core Segments Serving 16 of the Top 25 retailers Serving the Top 25 European Serving the Top Oil/Fuel Worldwide Retailers and Convenience Retailers Worldwide Currently served at scale by DN Sources: Global Powers of Retailing 2022, Deloitte, ranke
Slide 31: Table of Contents
Table of Contents Section Company and Industry Overview I Banking Overview IA Retail Overview IB Current Environment & Response II Financial Overview III Appendix IIIA GAAP Reconciliation IIIB PRIVILEGED AND CONFIDENTIAL
Slide 32: Diversified Manufacturing and Supply Chain Network
Diversified Manufacturing and Supply Chain Network The supply chain delays experienced since the second half of 2021 have increased our cycle time from order to installation/revenue recognition from approximately 90 days historically, to approximately 200 days currently North Paderborn • Unfavorable
Slide 33: Diversified Manufacturing and Supply Chain Network (Cont'd)
Diversified Manufacturing and Supply Chain Network (Cont’d) DN’s highly centralized manufacturing supply chain has faced significant Supply Chain Flow Chart disruptions the past 12-18 months, which has drastically impacted our ability to produce and deliver products • Production days (on average) ha
Slide 34: Backlog
Backlog ($ in millions) Given the supply chain headwinds effecting DN’s ability to deliver, the backlog has increased to the largest level since the Diebold / Wincor combination – ~$1.4B at 2Q22 2022 Backlog Our Banking and Retail solutions continue to garner strong demand in the market, as evidence
Slide 35: Inflation, Pricing, and Savings Overview
Inflation, Pricing, and Savings Overview ($ in millions) 2022 results have been heavily influenced by a surplus of inflation, which has ($50) exceeded our Annual Operating Plan expectations by a large margin $70 ($231) • Our current Forecast contemplates approximately $231M of incremental $55 inflat
Slide 36: Enhanced Operating Model
Enhanced Operating Model More customer centric, through a simpler model – at a lower cost – to drive growth across our core businesses. Industry Teams – Retail and Banking Technology Delivery Enablement 30 PRIVILEGED AND CONFIDENTIAL
Slide 37: New Organizational Model: Savings Overview
New Organizational Model: Savings Overview ($ in millions) Savings Overview and Goals $150M+ P&L Savings ~$70M Indirect Spend, Contractor, and Purchased Labor: enhanced procurement discipline (bid out large contracts), address process inefficiencies, cut non- value add spend 1 Timeline: ~8% in 2022,
Slide 38: Core Business Growth Drivers
Core Business Growth Drivers Core Products Services 1 Growth ▪ Leverage DN Series cost advantage and ▪ cBase accelerator program – leverage DN competitive differentiation to: Series to grow installed base • Grow into new markets • Focus on highest yielding markets 1-2% Global • Grow market share wit
Slide 39: Table of Contents
Table of Contents Section Company and Industry Overview I Banking Overview IA Retail Overview IB Current Environment & Response II Financial Overview III Appendix IIIA GAAP Reconciliation IIIB PRIVILEGED AND CONFIDENTIAL
Slide 40: 3-Year Model – Summary P&L
3-Year Model – Summary P&L ($ in millions) Over the 3-year strategic planning period, we expect revenue to scale to ~$4.0B and Adjusted EBITDA to expand to $540M (~520 bps margin improvement vs. 2022F) 1 2 Summary P&L 2022F 2023SP 2024SP 2021A 2021A PF Commentary Services $ 2,304 $ 2,117 $ 2,085 $ 2
Slide 41: 2022F Financial Overview
2022F Financial Overview ($ in millions) Revenue $3,905 2022F revenue is modeled to be ~$3.5B, which net of FX, assets held for sale, and divestitures, reflects ~1% decline over the prior year ($132) -1% FX: At current rates, FX is modeled to have an unfavorable impact of ~$223M on results versus th
Slide 42: 2023SP Financial Overview
2023SP Financial Overview ($ in millions) $3,857 Revenue $109 2023SP revenue is modeled to be ~$3.86B, reflecting 10.2% growth over the prior year $211 $3,500 Pricing: Assuming a ~1.4% lift from pricing in 2023, which is driven by Services pricing increase of ~1.5% and Product increase of 1.3% $49 (
Slide 43: 2024SP Financial Overview
2024SP Financial Overview ($ in millions) $3,973 Revenue $45 $3,857 $58 2024SP revenue is modeled to be $3.97B, reflecting 3% growth over the prior $13 year Pricing: Assuming a ~1.5% lift from pricing in 2024, which is largely driven by Services pricing increases of ~1.8% and produce pricing increas
Slide 44: 3-Year Free Cash Flow
3-Year Free Cash Flow ($ in millions) Q1 2022A Q2 2022A Q3 2022F Q4 2022F Q1 2023SP Q2 2023SP Q3 2023SP Q4 2023SP 2022F 2023SP 2024SP Adjusted EBITDA $ 15 $ 71 $ 74 $ 133 $ 102 $ 112 $ 117 $ 139 $ 293 $ 470 $ 540 3 (+/-) Changes in Working Capital (84) (36) (87) 72 14 (92) (60) 106 (135) (32) (2) (-
Slide 45: Forecasted Available Liquidity
Forecasted Available Liquidity ($ in millions) We will diligently manage net working capital through 2022 and in the projected period to maintain sufficient liquidity Key Assumptions / Drivers Forecasted Global Cash & Availability Forecast assumes refinancing that provides $284M of cash to $800 the
Slide 46: Table of Contents
Table of Contents Section Company and Industry Overview I Banking Overview IA Retail Overview IB Current Environment & Response II Financial Overview III Appendix IIIA GAAP Reconciliation IIIB PRIVILEGED AND CONFIDENTIAL
Slide 47: Product Inflation Schedule
Product Inflation Schedule ($ in millions) Inflation Related Costs - 2021 vs. 2020 Baseline Inflation Related Costs - 2022 vs. 2020 Baseline ($ in millions) 1Q'21 2Q'21 3Q'21 4Q'21 2021 1Q'22 2Q'22 3Q'22 4Q'22 2022 Product Revenue $345 $338 $376 $455 $1,514 $289 $308 $286 $464 $1,347 Outbound Freigh
Slide 48: 2021A Free Cash Flow
2021A Free Cash Flow ($ in millions) Q1'21 Q2'21 Q3'21 Q4'21 FY'21 Non-GAAP Adjusted EBITDA $100 $86 $103 $126 $415 3 (+/-) Changes Working Capital 4 (115) (131) 345 103 (-) Cash Income Tax Payments (10) (8) (12) (13) (42) (-) Pension (16) 14 (3) (7) (13) (-) Other (79) (3) (28) 3 (107) 1 Adjusted U
Slide 49: Snapshot of Liquidity Sizing
Snapshot of Liquidity Sizing ($ in millions) Bridging from Q2 2022 to the low point of the liquidity forecast observed in Q3 2023, the Company anticipates a financing need of $213M, including fees 1 $244 ($255) ($153) $335 ($31) ($62) ($180) ($213) ($111) 6/30/22 Global NWC Normalization Unlevered F
Slide 50: Collateral Package Overview
Collateral Package Overview Entity Collateral Summary • Guarantors / Loan Parties: 7 entities holding an estimated 28% - 31% of Diebold’s assets • 100% Equity Pledge: 8 entities holding an estimated 31% - 34% of Diebold’s assets • 65% Equity Pledge: 11 entities holding an estimated 9% - 11% of Diebo
Slide 51: Simplified Organizational Chart & Key Subsidiaries
Simplified Organizational Chart & Key Subsidiaries ($ in thousands) Diebold Nixdorf, Incorporated [Ohio] Legend a g c Diebold Guarantor / Diebold Nixdorf Diebold Nixdorf Other US Borrower / Holding Nixdorf Dutch 65% Pledged Other Global Guarantor Germany Holding B.V. Subsidiaries Subsidiaries Issuer
Slide 52: Tax Considerations
Tax Considerations Organization Structure • Diebold Nixdorf, Inc. manages its global operations via a dual principal structure, with DNI owning the Americas IP rights and WNI owning the Rest of the World’s IP rights • Local operations are conducted through distribution subsidiaries and third-party d
Slide 53: QTD Consolidated Performance vs. Prior Forecast (Aug-22)
QTD Consolidated Performance vs. Prior Forecast (Aug-22) non-GAAP ($ in millions) Summary: Net of FX, order entry was largely flat in the month, due to outperformance in Banking, which was offset by the timing of certain large orders coming through in Retail. August revenue came in $5M below Prior F
Slide 54: Savings Summary
Savings Summary • DN identified $120M of run-rate direct HC savings (FX adjusted) of which $55.0M has already been executed, Indirect Savings work is in flight and well on-track and management teams are working to estimate cost to achieve (“CTA”) for HC savings at the employee level Direct HC Saving
Slide 55: Pricing Example
Pricing Example Below is an example of a customer who purchased a particular model in 2021 pre-price increase and 2022 post price increase. 2021 Orders 2022 Orders Price Price Restated List Price after Sell Price per Original List Realization Restated Price Sell Price per Realization Quantity increa
Slide 56: Summary of Germany HoldCo Assets
Summary of Germany HoldCo Assets ($ in millions) % of Total Assets # Germany HoldCo Subsidiaries July 2022 Assets Before Eliminations 1 LE883 - Wincor Nixdorf International GmbH Germany 10.3% $914 2 LE817 - Diebold Nixdorf Systems GmbH 2.3% 206 3 LE823 - Diebold Nixdorf SAS - France 1.1% 99 4 LE775
Slide 57: Summary of Germany HoldCo Assets
Summary of Germany HoldCo Assets ($ in millions) % of Total % of Total Gross # Germany HoldCo Subsidiaries 2021 Revenue Revenue 2021 Gross Profit Profit 1 LE775 - Diebold Nixdorf Deutschland GmbH (1036) $491 5.2% $117 9.9% 2 LE824 - Wincor Nixdorf Ltd. UK 208 2.2% 43 3.6% 3 LE883 - Wincor Nixdorf In
Slide 58: Table of Contents
Table of Contents Section Company and Industry Overview I Banking Overview IA Retail Overview IB Current Environment & Response II Financial Overview III Appendix IIIA GAAP Reconciliation IIIB PRIVILEGED AND CONFIDENTIAL
Slide 59: August – QTD GAAP Results
August – QTD GAAP Results ($ in millions) QTD Aug FY'22 QTD Aug FY'21 Service Revenue $333.6 $371.1 Product Revenue 163.8 222.1 Revenue $497.5 $593.2 Cost of Sales Service $236.5 $258.4 Cost of Sales Product 143.6 177.8 Cost of Sales $380.1 $436.3 Gross Profit $117.3 $157.0 Selling and Administrativ
Slide 60: P&L Summary – GAAP to Non-GAAP Results
P&L Summary – GAAP to Non-GAAP Results ($ in millions) For the two months ending August 31, 2022 Net Gross % of % of Sales Profit Sales OPEX OP Sales GAAP results $497.4 $117.3 23.6% $132.9 ($15.6) (3.1%) Restructuring and transformation expenses - 2.4 (9.0) 11.4 Amortization of Wincor Nixdorf purch
Slide 61: P&L Summary – GAAP to Non-GAAP Results – Cont'd (Q2'22)
P&L Summary – GAAP to Non-GAAP Results – Cont’d ($ in millions) Q2'22 Net Gross % of % of Sales Profit Sales OPEX OP Sales GAAP results $851.7 $160.8 18.9% $252.3 ($91.5) (10.7%) Restructuring and transformation expenses - 13.1 (65.2) 78.3 Amortization of Wincor Nixdorf purchase accounting intangibl
Slide 62: P&L Summary – GAAP to Non-GAAP Results – Cont'd (Q1'22)
P&L Summary – GAAP to Non-GAAP Results – Cont’d ($ in millions) Q1'22 Net Gross % of % of Sales Profit Sales OPEX OP Sales GAAP results $829.8 $185.3 22.3% $268.7 ($83.4) (10.1%) Restructuring and transformation expenses - - - - Amortization of Wincor Nixdorf purchase accounting intangible assets (n
Slide 63: P&L Summary – GAAP to Non-GAAP Results – Cont'd (2021)
P&L Summary – GAAP to Non-GAAP Results – Cont’d ($ in millions) 2021 Net Gross % of % of Sales Profit Sales OPEX OP Sales GAAP results $3,905.2 $1,043.4 26.7% $906.3 $137.1 3.5% Restructuring and transformation expenses - 20.0 (78.9) 98.9 Amortization of Wincor Nixdorf purchase accounting intangible
Slide 64: Reconciliation of GAAP net loss to EBITDA and Adjusted EBITDA
Reconciliation of GAAP net loss to EBITDA and Adjusted EBITDA ($ in millions) For the two months ending August 31, 2022 Net loss ($41.4) Income tax expense (benefit) (3.8) Interest income (2.5) Interest expense 33.6 Depreciation and amortization 20.3 EBITDA $6.2 Share-based compensation 2.5 Amortiza
Slide 65: Reconciliation of GAAP net loss to EBITDA and Adjusted EBITDA – Cont'd
Reconciliation of GAAP net loss to EBITDA and Adjusted EBITDA – Cont’d ($ in millions) 2018 2019 2020 Q1'21 Q2'21 Q3'21 Q4'21 2021 Q1'22 Q2'22 Q2'22 TTM Net loss ($529) ($345) ($268) ($8) ($30) ($2) ($38) ($78) ($184) ($199) ($423) Income tax expense (benefit) 37 117 (1) 1 (11) (1) 39 28 51 64 153 I
Slide 66: GAAP to Non-GAAP Gross Profit Reconciliation
GAAP to Non-GAAP Gross Profit Reconciliation ($ in millions) For the two months ending August 31, 2022 Services Products Total GAAP Gross Profit $97.1 $20.2 $117.3 Restructuring and transformation expenses 1.5 0.9 2.4 Held for sale non-core European retail business (0.6) 1.4 0.8 Non-GAAP Gross Profi
Slide 67: GAAP to Non-GAAP Gross Profit Reconciliation – Cont'd
GAAP to Non-GAAP Gross Profit Reconciliation – Cont’d ($ in millions) 2021 Banking Retail Total GP GAAP results $736.5 $306.9 $1,043.4 Restructuring and transformation expenses 14.9 5.1 20.0 Loss making contract related to discontinued offering 2.8 - 2.8 Inventory charge/gain 6.6 - 6.6 Other (4.8) 0
Slide 68: Historical Gross Profit GAAP to Non-GAAP Reconciliations
Historical Gross Profit GAAP to Non-GAAP Reconciliations - New P&L Format ($ in millions) 2019 Services Products Total GP GAAP $687.0 $380.1 $1,067.1 Restructuring 7.8 1.8 9.6 WN PPA - 13.3 13.3 Germany - - - LMC - - - Inventory 15.7 (2.9) 12.8 Other 4.4 1.8 6.2 Non-Routine 20.1 (1.1) 19.0 Non-GAAP
Slide 69: GAAP Cash from Operating Activities to Non-GAAP Unlevered Free Cash Flow
GAAP Cash Provided by Operating Activities to Non-GAAAP Unlevered Free Cash Flow and Non-GAAP Adj. Unlevered Operating Cash Flow ($ in millions) Q1'21 Q2'21 Q3'21 Q4'21 2021 Q1'22 Q2'22 Q2'22 YTD Net cash provided by Operating Activities (GAAP Measure) ($65) ($78) ($148) $415 $124 ($226) ($80) ($306
Slide 70: Return on Invested Capital Calculation
Return on Invested Capital Calculation ($ in millions) 2018 2019 2020 2021 Q2'22 TTM Revenue $4,579 $4,409 $3,902 $3,905 $3,699 GAAP Operating Profit (Loss) (363) (27) 24 137 (87) Non-GAAP Adjustments 525 295 331 196 329 Non-GAAP Operating Profit 162 268 355 333 242 Effective Tax Rate of 30% ($49) (
Slide 71: Product Revenue Reconciliation
Product Revenue Reconciliation ($ in millions) Q1'21 Q2'21 Q3'21 Q4'21 2021 Q1'22 Q2'22 GAAP Product Revenue (as reported) $370 $357 $397 $478 $1,602 $304 $326 Less: HFS non-core European retail business (1) (2) (2) (4) (9) (3) (5) Less: Software Licenses (24) (17) (19) (19) (79) (12) (13) Adjusted
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