Diebold Nixdorf, Incorporated: Diebold Nixdorf CEO steps down; Company reaffirms 2017 guidance

Diebold Nixdorf, Incorporated
North Canton, Ohio, United States of America

Public Disclosure of Inside Information pursuant to Article 17 MAR

December 13, 2017 - North Canton, Ohio, United States of America - Diebold Nixdorf, Incorporated (the "Company") today announced that Andreas "Andy" W. Mattes is stepping down from his position as president and chief executive officer of the Company effective immediately. The Office of the Chief Executive will be led by Christopher A. Chapman, senior vice president and chief financial officer, and Juergen Wunram, senior vice president and chief operating officer, until a permanent successor has been named. Chapman and Wunram will serve as Interim Co-Presidents and Co-CEOs of the Company in the Office of the Chief Executive. The Board of Directors also announced that it has created a search committee and retained an executive search firm to immediately begin the process to find a highly qualified CEO.

Also today, Diebold Nixdorf, Inc. reaffirmed its full-year 2017 guidance of approximately $4.6 billion in revenue, adjusted EBITDA of $370 million to $380 million and a non-GAAP EPS range of $1.05 to $1.15.

Full-year 2017 outlook⁽¹⁾

⁽¹⁾- The Company expects a non-GAAP effective tax rate to be around 20% for the full year. With respect to the company's non-GAAP tax rate outlook for 2017, the Company is not providing the most directly comparable GAAP financial measure and, with respect to the Company's non-GAAP tax rate and adjusted EBITDA outlook for 2017, the Company is not providing corresponding reconciliations 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 exclude the future impact of restructuring actions, net non-routine items, acquisition, divestiture and integration related expenses and purchase accounting fair value adjustments. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, our future period tax rate calculated and presented in accordance with GAAP.

Non-GAAP Financial Measures and Other 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 cash flow/(use), net investment/(debt), EBITDA, adjusted EBITDA, non-GAAP effective tax rate and constant currency results. The Company calculates constant currency by translating the prior year results at the current year exchange rate. The Company uses these non-GAAP financial measures, in addition to GAAP financial measures, to evaluate our operating and financial performance and to compare such performance to that of prior periods and to the performance of our 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 our operating and financial performance and trends in our 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. We provide EBITDA and Adjusted EBITDA because we believe that investors and securities analysts will find EBITDA and adjusted EBITDA to be useful measures for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements. We are also providing EBITDA and adjusted EBITDA in light of issuance of our credit agreement and 8.5% senior notes due 2024. For more information, please refer to the section, "Notes for Non-GAAP Measures".

North Canton, December 13, 2017

Diebold Nixdorf, Incorporated

Notifying Person:
Stephen A. Virostek
Vice President, Investor Relations
Telephone +1 (330) 490-6319
Facsimile +1 (330) 490-3794
stephen.virostek@dieboldnixdorf.com
 

Forward-Looking Statements

This ad hoc release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated adjusted revenue growth, adjusted internal revenue growth, adjusted diluted earnings per share, and adjusted earnings per share growth. 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 financial performance of the Company through the end of the fiscal year ending December 30, 2017 and the preparation of its financial statements for fiscal year 2017; the ultimate impact of the domination and profit and loss transfer agreement with Diebold Nixdorf AG ("DPLTA") and the outcome of the appraisal proceedings initiated in connection with the implementation of the DPLTA; the ultimate outcome and results of integrating the operations of the Company and Diebold Nixdorf AG; the ultimate outcome of the Company's pricing, operating and tax strategies applied to Diebold Nixdorf AG and the ultimate ability to realize synergies; the Company's ability to successfully launch and operate its joint ventures in China with the Inspur Group and Aisino Corp.; the impact of market and economic conditions on the financial services industry; the capacity of the Company's technology to keep pace with a rapidly evolving marketplace; pricing and other actions by competitors; the effect of legislative and regulatory actions in the United States and internationally; the Company's ability to comply with government regulations; the impact of a security breach or operational failure on the Company's business; the Company's ability to successfully integrate acquisitions into its operations; the impact of the Company's strategic initiatives; and other factors included in the Company's filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2016 and in other documents that the Company files with the SEC. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date of this ad hoc release.

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