DGAP-Ad-hoc: Diebold Nixdorf, Incorporated / Key word(s): Half Year Results
Diebold Nixdorf adjusts 2021 outlook
29-Jul-2021 / 13:08 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
July 29, 2021 - North Canton, Ohio, United States of America - Diebold Nixdorf, Incorporated (ISIN: US2536511031, the
"Company") has decided today to adjust its 2021 outlook for profit and free cash flow due to a higher-than-expected
inflation for components and logistics.
For the full-year 2021^1 the Company's adjusted outlook is:
Previous outlook Current outlook
Total Revenue USD4.0B - USD4.1B USD4.0B - USD4.1B
Adjusted EBITDA (non-GAAP measure)^2 USD480M - USD500M USD455M - USD475M
Free cash flow (non-GAAP measure)^3 USD140M - USD170M USD120M - USD140M
Return on Invested Capital (non-GAAP measure)^2,4 18% 17%
^1 - The Company's 2021 outlook includes the impact of deconsolidating the Company's joint venture in China and the divestitures of Diebold Nixdorf Portavis GmbH, the Company's Brazil online fraud protection business and its electronic security business in Asia.
^2 - With respect to the Company's adjusted EBITDA and Return on Invested Capital (ROIC) outlook for 2021, the Company is not providing a reconciliation to the most directly comparable GAAP financial measures because it is unable to predict with reasonable certainty those items that may affect such measures calculated and presented in accordance with GAAP without unreasonable effort. These measures primarily exclude the future impact of restructuring actions and net non-routine items. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, operating profit and net income calculated and presented in accordance with GAAP. Please see "Non-GAAP Financial Measures" for additional information regarding the Company's use of non-GAAP financial measures.
^3 - Free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities from continuing operations less capital expenditures, less cash used for capitalized software development, and excluding the impact of changes in cash of assets held for sale and the use of cash for M&A activities, and excluding the use of cash for the settlement of foreign exchange derivative instruments, and excluding the use of cash for the termination of certain interest rate swaps due to the debt refinancing in Q3 2020, and including the proceeds from the surrender of Company-owned life insurance policies. With respect to the Company's non-GAAP free cash flow outlook for 2021, it is not providing a reconciliation to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty those items that may affect such measure calculated and presented in accordance with GAAP without unreasonable effort. This measure primarily excludes the future impact of changes in cash of assets held for sale, cash used for M&A activities and the settlement of foreign exchange derivative instruments. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, net cash provided (used) by operating activities calculated and presented in accordance with GAAP. Please see "Non-GAAP Financial Measures" for additional information regarding the Company's use of non-GAAP financial measures.
^4 - ROIC is defined as tax-effected adjusted operating profit (NOPAT), utilizing an estimated 30% effective tax rate, divided by average invested capital for the period.
Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements presented in accordance with GAAP, the Company considers certain financial measures that are not prepared in accordance with GAAP, including free cash flow/(use) and adjusted EBITDA. The Company uses these non-GAAP financial measures, in addition to GAAP financial measures, to evaluate its operating and financial performance and to compare such performance to that of prior periods and to the performance of its competitors. Also, the Company uses these non-GAAP financial measures in making operational and financial decisions and in establishing operational goals. The Company also believes providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, helps investors evaluate its operating and financial performance and trends in its business, consistent with how management evaluates such performance and trends. The Company also believes these non-GAAP financial measures may be useful to investors in comparing its performance to the performance of other companies, although its non-GAAP financial measures are specific to the Company and the non-GAAP financial measures of other companies may not be calculated in the same manner. The Company provides adjusted EBITDA because it believes that investors and securities analysts will find adjusted EBITDA to be a useful measure for evaluating its operating performance and comparing its operating performance with that of similar companies that have different capital structures and for evaluating its ability to meet its future debt service, capital expenditures and working capital requirements. The Company is also providing adjusted EBITDA in light of its credit agreement and the issuance of its secured and unsecured senior notes.
For additional information regarding the Company's use of non-GAAP financial measures, please refer to the Company's press release of July 29, 2021 and its financial statements as published under https://investors.dieboldnixdorf.com/.
North Canton, July 29, 2021 Diebold Nixdorf, Incorporated
Notifying Person: Stephen A. Virostek Vice President, Investor Relations Telephone +1 (330) 490-6319 Facsimile +1 (330) 490-3794 email@example.com
Forward-Looking Statements This ad hoc notice contains statements that are not historical information and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the potential impact of the ongoing coronavirus (COVID-19) pandemic, anticipated revenue, future liquidity and financial position. Statements can generally be identified as forward looking because they include words such as "believes," "anticipates," "expects," "could," "should" or words of similar meaning. Statements that describe the Company's future plans, objectives or goals are also forward-looking statements. Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may affect the Company's results include, among others: the duration and overall impact on the Company and its business of the global supply chain complexities that the Company is currently facing, including delays in sourcing key components as well as longer transport times, especially for container ships and U.S. trucking, given the Company's reliance on suppliers, subcontractors and availability of raw materials and other components; the ultimate impact of the ongoing COVID-19 pandemic including further adverse effects to the Company's supply chain, maintenance of increased order backlog, and the effects of any COVID-19 related cancellations; the Company's ability to continue to achieve benefits from its cost reduction initiatives and other strategic initiatives such as DN Now and its digitally enabled hardware, services and software strategy; the success of the Company's new products, including its DN Series line and EASY family of retail checkout solutions; the impact of a cybersecurity breach or operational failure on the Company's business; the Company's ability to generate sufficient cash to service its debt or to comply with the covenants contained in the agreements governing its debt; the Company's ability to attract, retain and motivate key employees; changes in the Company's intention to further repatriate cash and cash equivalents and short-term investments residing in international tax jurisdictions, which could negatively impact foreign and domestic taxes; the Company's success in divesting, reorganizing or exiting non-core and/or non-accretive businesses and its ability to successfully manage acquisitions, divestitures, and alliances; the outcome of the appraisal proceedings initiated in connection with the implementation of the Domination and Profit Loss Transfer Agreement with the former Diebold Nixdorf AG and the merger/squeeze-out; the impact of market and economic conditions, including the proliferation of cash and any deterioration or disruption in the financial and service markets, including the bankruptcies, restructurings or consolidations of financial institutions, which could reduce the Company's customer base and/or adversely affect its customers' ability to make capital expenditures, as well as adversely impact the availability and cost of credit; competitive pressures, including pricing pressures and technological developments; changes in political, economic or other factors such as currency exchange rates, inflation rates (including the impact of possible currency devaluations in countries experiencing high inflation rates), recessionary or expansive trends, taxes and regulations and laws affecting the worldwide business in each of the Company's operations; the Company's ability to maintain effective internal controls; unanticipated litigation, claims or assessments, as well as the outcome/impact of any current/ pending litigation, claims or assessments; the effect of changes in law
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