Diebold Nixdorf Incorporated · NYSE:DBD
Diebold Nixdorf — Q1 2024 Earnings Presentation
23 slides from Diebold Nixdorf's earnings presentation, May 8, 2024
Slide 1: First Quarter 2024 Earnings Performance Summary Update
First Quarter 2024 Earnings Performance Summary Update May 2, 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 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
Slide 4: First Quarter 2024 Summary
First Quarter 2024 Summary Winning with Customers Strong First Quarter Financial Results(1) • Q1-24 product backlog of $1.1B maintained at year-end 2023 levels • Q1-24 revenue of $897M, up 5.1% YoY • Consistent refresh activity as financial institutions replace • Q1-24 gross profit of $246M, up 17.2
Slide 5: Diebold Nixdorf Continuous Improvement Journey
Diebold Nixdorf Continuous Improvement Journey Focusing on key processes to continuously deliver value to customers and shareholders; early signs of progress in Q1-24 results Overview • Continue to invest in our people to enable leaders to create People leading-edge products and deliver world-class
Slide 6: Global Review First Quarter 2024
Global Review First Quarter 2024 Balanced global business with solid activity across all regions North America Europe (~28% of Q1 2024 Revenue) (~42% of Q1 2024 Revenue) Highlights: Highlights: ‒ Improved service performance in the first ‒ Stable ATM installed base and demand for quarter driven by:
Slide 7: Q1 2024 Consolidated Financial Summary
Q1 2024 Consolidated Financial Summary Strong start to 2024 with another quarter of continued improvement compared to the prior year period Non-GAAP Summary(1) Change Q1-24 Overview Q1 2023 Q1 2024 ($ in millions) YoY • Higher revenue and gross margin expansion, combined Total Revenue $853 $897 5.1%
Slide 8: Q1 2024 Banking Financial Performance
Q1 2024 Banking Financial Performance Solid quarter for Banking with continued strength in product and early signs of service performance improvement Banking Segment Revenue ($M) Banking Segment Gross Profit ($M) YoY Growth Service Product $750 $665 $665 $649 9.4% $202 $593 $350 $181 $265 $264 $262
Slide 9: Q1 2024 Retail Financial Performance
Q1 2024 Retail Financial Performance(1) Retail performance driven by continued strength in service Retail Segment Revenue ($M) Retail Segment Gross Profit ($M) Service Product YoY Growth $278 $288 $260 $252 $248 (4.6)% $75 $74 $136 $134 $69 $127 Gross Profit $63 $65 $117 $110 (13.4)% Revenue $133 $1
Slide 10: Q1 2024 Financial Condition Summary
Q1 2024 Financial Condition Summary Continue to focus on cash generation for the benefit of all our stakeholders ($ in millions) Q1-23 Q2-23 Q3-23(1) Q4-23 Q1-24 Adjusted EBITDA(2) $64 $84 $109 $144 $103 Overview Working Capital source (use) $(3) $(239) $(56) $99 $20 • Q1-24 free cash use favorable
Slide 11: 2024 Performance Outlook
2024 Performance Outlook Reiterating previously communicated performance outlook for 2024; well positioned to deliver on full-year priorities Full Year 2023 Full Year Key Details Actuals(1) 2024 Outlook • Profitable revenue growth in the low single-digit range Low single-digit Total Revenue(2) $3.75
Slide 12: Compelling Investment Thesis
Compelling Investment Thesis Healthy product backlog combined with recurring service business (~70% of service revenue) provides predictability 1 and stability around near-term performance Accelerating gross margin expansion with our continuous improvement programs and maintaining 2 operating expens
Slide 13: Supplemental Slides
Supplemental Slides 13
Slide 14: Reconciliation of GAAP results to Non-GAAP results – Trade Net Working Capital
Reconciliation of GAAP results to Non-GAAP results – Trade Net Working Capital ($M) Quarter Ended Q1-23 Q2-23 Q3-23* Q4-23 Q1-24 Total Current Assets $1,809 $2,136 $2,081 $2,154 $1,972 Total Current Liabilities 1,743 3,090 1,414 1,421 1,418 Working Capital $66 ($953) $667 $733 $554 Accounts Receivab
Slide 15: Reconciliation of GAAP results to Non-GAAP results – Q1-24
Reconciliation of GAAP results to Non-GAAP results – Q1-24 ($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 16: Reconciliation of GAAP results to Non-GAAP results – Q1-23
Reconciliation of GAAP results to Non-GAAP results – Q1-23 ($M) Restructuring and transition - personnel expenses incurred during 2024 and 2023 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees tran
Slide 17: Reconciliation of free cash flow
Reconciliation of free cash flow ($M) Quarter Ended Q1-23 Q2-23 Q3-23* Q4-23 Q1-24 Net cash provided (used) by operating activities $ (95.9) $ (241.7) $ (82.2) $ 162.8 $ (23.5) Excluding the impact of changes in cash of assets held for sale and the use of cash for M&A activities 6.5 (0.7) 0.7 - - Ca
Slide 18: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q1-24
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q1-24 ($M) The company defines EBITDA as net loss excluding income tax benefit/expense, net interest expense, and depreciation and amortization expense. Adjusted EBITDA is EBITDA excluding the effects of the following items: share-bas
Slide 19: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q4-23
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q4-23 ($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-bas
Slide 20: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q3-23
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q3-23 ($M) * - Combined Results for the reported period, is a Non-GAAP measure that reflects financial performance by combining outcomes of both the predecessor and successor periods as well as the impacts of having implemented Fresh
Slide 21: Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q2-23
Reconciliation of GAAP net income to EBITDA and Adjusted EBITDA – Q2-23 ($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-bas
Slide 22: 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 Q1-23 Q2-23 Q3-23* Q4-23* Q1-24* Net loss $ (513.2) $ (991.4) $ 1,179.6 $ 1,369.6 $ (644.4) Impact of Fresh Start Accounting - - 14.6 32.5 20.6 Income tax expense (benefit)
Slide 23: Net Debt Summary and Net Leverage
Net Debt Summary ($M) and Net Leverage * * Quarter Ended Q1-23 Q2-23 Q3-23* Q4-23 Q1-24 Cash, cash equivalents, restricted cash and short-term investments $ 263.0 $ 552.8 $ 456.9 $ 605.7 $ 407.3 Cash included in assets held for sale 0.9 0.2 - - - Debt instruments (2,655.4) (3,416.6) (1,258.2) (1,252