Slide 1: Third Quarter 2024 Earnings
Third Quarter 2024 Earnings Performance Summary Update November 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: Third Quarter 2024 Takeaways
Third Quarter 2024 Takeaways 1 Strong third quarter performance driven by improved operational execution 2 Continue to deliver higher profitability with Lean & Continuous Improvement 3 More linear cash flow positions DN well for +25% FCF conversion (1) for the full year 4 Expect to achieve high-end
Slide 5: DN Continuous Improvement Journey – Consistent Operational Execution
DN Continuous Improvement Journey – Consistent Operational Execution Our Lean efforts are accelerating the flywheel - conducted 3 Shingijutsu Kaizen events improving safety & quality, reducing floor space & inventory and enhancing the flow of people & parts to drive efficiency Trailing 12-month Reve
Slide 6: Supply Chain Transformation – Lean Manufacturing
Supply Chain Transformation – Lean Manufacturing Driving results with Lean and Continuous Improvement – Paderborn, Germany and Manaus, Brazil manufacturing facilities Thank you to our employees for embracing our Lean and Continuous Improvement mindset Building a Lean Operating System enabled by cult
Slide 7: Q3 2024 Consolidated Financial Summary
Q3 2024 Consolidated Financial Summary Another solid quarter of operational execution; remaining focused on continuous improvement journey to increase profitability Q3-24 Overview Non-GAAP Summary(1) Change Q3 2023(3) Q3 2024 • Banking revenue growth of 3.8% YoY offset by Retail ($ in millions) YoY
Slide 8: YTD Q3 2024 Consolidated Financial Summary
YTD Q3 2024 Consolidated Financial Summary Strong year-to-date execution with revenue growth, margin expansion and improved free cash flow performance YTD Q3-24 Overview Non-GAAP Summary(1) YTD YTD Change ($ in millions) Q3 2023(3) Q3 2024 YoY • YTD revenue up 1.8% YoY driven by disciplined revenue
Slide 9: Q3 2024 Banking Financial Performance
Q3 2024 Banking Financial Performance Another solid quarter for Banking with strength in product and continued service performance improvement Banking Segment Revenue ($M) Banking Segment Gross Profit ($M) YoY Growth Service Product $750 3.8% $707 $691 $202 $665 $649 $198 $198 $181 $350 $306 $290 10
Slide 10: Q3 2024 Retail Financial Performance
Q3 2024 Retail Financial Performance(1) Macro environment continues to impact product revenue, but seeing early signs of stabilization with growing opportunity pipeline Retail Segment Revenue ($M) Retail Segment Gross Profit ($M) Service Product YoY Growth $278 $288 $248 $236 $232 (15.0)% $75 $74 $1
Slide 11: Q3 2024 Financial Condition Summary
Q3 2024 Financial Condition Summary Continue to focus on more linear and stronger cash generation for the benefit of all our stakeholders ($ in millions) Q3-23(1) Q4-23 Q1-24 Q2-24 Q3-24 Overview Adjusted EBITDA(2) $109 $144 $103 $119 $118 • Clear line of sight to +25% free cash flow conversion Work
Slide 12: Reiterating 2024 Performance Outlook
Reiterating 2024 Performance Outlook Expect to achieve high-end of FY24 Adjusted EBITDA range of $435M - $450M reflecting stronger profitability driven by impact of our lean manufacturing and continuous improvement actions FY23 Previous Key Details Actuals(1) FY24 Outlook • Incorporates continued st
Slide 13: Long-term Foundational Building Blocks
Long-term Foundational Building Blocks Implementing best practices from investment grade companies and creating value for shareholders Improve capital Drive more linear and Eliminate spend and Implement balanced structure and fortify stronger free cash flow complexity related to capital allocation b
Slide 14: Building Momentum Moving into 2025
Building Momentum Moving into 2025 Industry-leading solutions and products winning in the market with highly 1 attractive customer base of banks and retailers 2 Driving significant improvement in the initial stages of Lean journey and expanding efforts throughout the company Strengthened leadership
Slide 15: Supplemental Slides
Supplemental Slides 15
Slide 16: Reconciliation of GAAP results to Non-GAAP results – Q3-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q3-24 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees tran
Slide 17: Reconciliation of GAAP results to Non-GAAP results – YTD Q3-24 ($M)
Reconciliation of GAAP results to Non-GAAP results – YTD Q3-24 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees
Slide 18: Reconciliation of GAAP results to Non-GAAP results – Q3-23 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q3-23 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees tran
Slide 19: Reconciliation of GAAP results to Non-GAAP results – YTD Q3-23 ($M)
Reconciliation of GAAP results to Non-GAAP results – YTD Q3-23 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees
Slide 20: Reconciliation of GAAP results to Non-GAAP results – Q1-23 ($M)
Reconciliation of GAAP results to Non-GAAP results – Q1-23 ($M) To supplement our condensed consolidated financial statements presented in accordance with GAAP, the company utilizes certain financial measures that are not prepared in accordance with GAAP, including Non-GAAP results, EBITDA and Adjus
Slide 21: Reconciliation of free cash flow - Quarter Trend ($M)
Reconciliation of free cash flow - Quarter Trend ($M) * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having implemented Fresh Start Accounting in the
Slide 22: Reconciliation of free cash flow – Year-to-date ($M)
Reconciliation of free cash flow – Year-to-date ($M) * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having implemented Fresh Start Accounting in the
Slide 23: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Quarter Trend ($M)
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Quarter Trend ($M) The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Adjusted EBITDA is EBITDA excluding the effects of the following items: s
Slide 24: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – YTD ($M)
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – YTD ($M) The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Adjusted EBITDA is EBITDA excluding the effects of the following items: share-based
Slide 25: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Trailing Twelve Month
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Trailing Twelve Month * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having impleme
Slide 26: Reconciliation of GAAP to non-GAAP revenue – Trailing Twelve Month
Reconciliation of GAAP to non-GAAP revenue – Trailing Twelve Month Held for sale business are the results of a formerly majority-owned business that the Company sold in Q3 2023 that are excluded from the metrics used to evaluate the core business and assign resources. Legal deal matters primarily re
Slide 27: Net Debt Summary ($M) and Net Leverage
Net Debt Summary ($M) and Net Leverage * * * We believe that cash, cash equivalents, restricted cash, and short-term investments on the balance sheet that net cash against outstanding debt, presented as net debt above, is a meaningful measure. * - Combined Results for the reported period, is a Non-G