Slide 1: Diebold Nixdorf Investor Update Call August 2023
On Diebold Nixdorf Investor Update Call August 2023
Slide 2: Forward-looking statements
This presentation contains 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 and are not guarantees of fut
Slide 3: Non-GAAP financial measures
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 cash flow (use) and unlevered free ca
Slide 4: Key messages: restructuring completed, strong Q2 results
Completed financial restructuring and emerged as a stronger company with a recapitalized balance sheet, enhanced liquidity position, and a solid foundation for long- term success Delivered strong second quarter financial results with meaningful year-over-year improvements in revenue and profitabilit
Slide 5: Emerging and Relisting
Emerging and Relisting DIEBOLD NIXDORF | 5
Slide 6: Emerging as a stronger company; recurring Services revenue
Emerging from the restructuring process as a stronger company focused on operational execution and customer satisfaction Strong secular growth drivers around cash recycling, branch transformation and new checkout journeys support demand in Banking and Retail Product backlog levels provides secured d
Slide 7: Legacy vs post-emergence Diebold Nixdorf
Diebold Nixdorf has a “Legacy” Diebold Nixdorf “Post-Emergence” Diebold Nixdorf solid foundation with world-class technology, a Revamped balance sheet, cash flow profile, and supply chain… leading market position, and strong customer Materially De-levered ~$2.6 billion gross debt $1.25 billion gross
Slide 8: Post-Petition Capital Structure and Exit Financing
Post-Petition Capital Structure ($M) Highlights of Exit Financing • Maturity: 5 years from emergence date • Pricing: SOFR + 7.50% • Call Protection: • 1.00% if prepaid using proceeds of indebtedness incurred under the Accordion Basket • 5.00% if prepaid using proceeds $1,250 from any other indebtedn
Slide 9: DBD Equity Profile and Relisting Overview
DBD Equity Profile Relisting Overview • The overwhelming support of Diebold Nixdorf’s post- “Legacy” Diebold “New” Diebold restructuring shareholder base enabled the Company to Nixdorf Nixdorf complete an expedited, highly consensual deleveraging • The shareholder base is anchored by long-term, valu
Slide 10: Second Quarter Earnings
Second Quarter Earnings DIEBOLD NIXDORF | 10
Slide 11: Banking Segment Overview
Revenue ($M)(1) Gross Profit ($M)(1) Adjusted EBITDA ($M)(2) Adjusted EBITDA Margin (%)(2) +$71M YoY +$18M YoY +$13M YoY +8.4% Favorable +8.6% +18.9% +80 bps $917 $84 $228 9.2% $846 $71 $210 8.4% Q2-22 Q2-23 Q2-22 Q2-23 Q2-22 Q2-23 Q2-22 Q2-23 Banking Segment Overview Retail Segment Overview APAC &
Slide 12: Backlog Overview
FY22 – FY23 Quarterly Backlog(1) Trend $3.0 $500 Backlog Overview Total Product Revenue ($M) $2.5 $400 • Strong historical order performance coupled with Total Product Backlog ($B) supply chain headwinds that impacted our ability to $2.0 $300 deliver product has created an elevated backlog $1.4 $1.4
Slide 13: Banking Segment Revenue and Gross Profit
Banking Segment Revenue ($M) Banking Segment Gross Profit ($M) YoY Service Product Service Product Growth $156 $165 $689 $665 12.7% $148 $144 $141 $590 $580 $593 $30 $26 $38 $53 $28 $294 $265 31.8% Gross Profit $201 $200 $212 Revenue $118 $118 $118 $113 $112 $389 $380 $395 $381 $400 2.8% Q2-22 Q3-22
Slide 14: Retail Segment Revenue and Gross Profit
Retail Segment Revenue ($M)(1) Retail Segment Gross Profit ($M)(1) YoY Service Product Service Product Growth $275 $68 $69 $256 $260 $252 (1.3)% $62 $63 $56 $225 $23 $27 $21 $14 $21 $121 $140 $127 $117 $95 (2.8)% Gross Profit $45 $41 $42 $42 $42 Revenue $135 $130 $135 $133 $135 Flat Q2-22 Q3-22 Q4-2
Slide 15: Q2 YTD 2023 vs. prior year and outlook
Q2 YTD 2023 vs. Q2 YTD 2022 Q2 YTD 2023 vs. Q2 YTD 2023 Outlook(1) Revenue ($M)(2) Gross Margin (%)(2) Q2 2023 Q2 2023 +$101M YoY Favorable YTD Actuals YTD Outlook(1) +100 bps $1,771 24.7% $1,670 23.7% Total Revenue(2) $1.77B ~$1.70 - $1.75B YTD Q2-22 YTD Q2-23 YTD Q2-22 YTD Q2-23 Operating Expense
Slide 16: Days Payable Outstanding
Days Payable Outstanding Trend Overview • Throughout the course of 2023, Diebold Nixdorf has reduced its 140 DPO from a high of 113 days to 83 days via increased 118 117 116 120 112 108 113 operational discipline and proceeds from the DIP Facility 106 104 99 100 91 87 95 • Expect to manage to a DPO
Slide 17: Free Cash Flow Overview
Free Cash Flow Overview Quarterly Free Cash Flow ($M)(1) • Free cash use in 2Q-23 of $253M driven by a number of AP Normalization Deferred Revenue items that are not expected to recur at the same rate Transaction Fees Other Cash Uses $84 post-emergence • Accounts payable use of $135M related to vend
Slide 18: Revenue Units and Full Year 2023 Outlook
Full Year Full Year Key Details 2022 Actuals 2023 Outlook • Factory confirmed orders for the year of 97% for ATM units and 82% for SCO ATM: 49k ATM: ~60k units support revenue unit outlook Revenue Units SCO: 22k SCO: ~35k • Mix shift developing in Retail towards SCO units as customers accelerate EPO
Slide 19: Key programs across five strategic pillars
Capitalize on the industry-wide secular growth drivers around branch transformation and cash recycling in Banking and customer self-service journeys in Retail Key programs (initial list) are focused on driving P&L / cashflow improvements across the five strategic pillars Achieve the Reduce SG&A Shri
Slide 20: Supplemental Slides
Supplemental Slides DIEBOLD NIXDORF | 20
Slide 21: Non-GAAP notes and definitions
Restructuring and transition - personnel expenses incurred during 2023 and 2022 relate to the cost savings initiative focused on operational simplification and automation of processes, and include severance and payroll of employees transitioning out of the organization. Costs of thirdparties assisti
Slide 22: Reconciliation of GAAP to Non-GAAP Results YTD Q2-23
Reconciliation of GAAP results to Non-GAAP Results — YTD Q2-23 ($M) YTD 6/30/2023 YTD 6/30/2022 Net Gross %of %of Net Gross % of % of Sales Profit Sales OPEX OP Sales Sales Profit Sales OPEX OP Sales GAAP results $1,780.3 $434.5 24.4% $440.5 $ (6.0) (0.3)% $1,681.5 $346.1 20.6 % $521.0 $(174.9) (10.
Slide 23: Free cash flow reconciliation
Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Net cash (used) provided by operating activities (GAAP measure) (80.4) (176.2) 94.9 (95.9) (241.7) Excluding the impact of changes in cash of assets held for sale and the use of cash for M&A activities - 3.4 (1.6) 6.5 (0.7) Excluding the use of cash for the settlement o
Slide 24: EBITDA and Adjusted EBITDA definitions
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 compensation, amortization of cloud-based software implementation costs, f
Slide 25: EBITDA and Adjusted EBITDA definitions
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 compensation, amortization of cloud-based software implementation costs, f