Diebold Nixdorf Inc (DBD) 2024 Q2 法說會逐字稿

Hello, everyone, and welcome to the Q2 2024 Diebold Nixdorf earnings call. My name is Charlie and I'll be coordinating the call today. (Operator Instructions)

大家好，歡迎參加 2024 年第二季 Diebold Nixdorf 財報電話會議。我叫查理，今天我將協調通話。（操作員說明）

I'd now like to turn the call over to our host, Chris Sikora, to begin. Chris, please go ahead.

現在我想將電話轉給我們的主持人克里斯·西科拉（Chris Sikora）開始。克里斯，請繼續。

Hello, everyone, and welcome to our second quarter 2024 earnings call. To accompany our prepared remarks, we have posted our slide presentation to the Investor Relations section of our website.

大家好，歡迎參加我們的 2024 年第二季財報電話會議。為了配合我們準備好的發言，我們已將幻燈片簡報發佈到我們網站的投資者關係部分。

Before we start, I will remind all participants that you will hear forward-looking statements during this call. These statements reflect the expectations and beliefs of our management team at the time of the call, but they are subject to risks that could cause actual results to differ materially from these statements.

在我們開始之前，我將提醒所有參與者，您將在本次電話會議中聽到前瞻性陳述。這些聲明反映了我們管理團隊在通話時的期望和信念，但它們存在可能導致實際結果與這些聲明有重大差異的風險。

You can find additional information on these factors in the company's periodic and annual filings with the SEC. Participants should be mindful that subsequent events may render this information to be out of date.

您可以在公司向 SEC 提交的定期和年度文件中找到有關這些因素的更多資​​訊。參與者應注意，後續事件可能會使此資訊過時。

We will also be discussing certain non-GAAP financial measures on today's call. As noted on slide 3, a reconciliation between GAAP and non-GAAP measures can be found in the supplemental schedules of the presentation.

我們還將在今天的電話會議上討論某些非公認會計準則財務指標。如投影片 3 所示，GAAP 和非 GAAP 指標之間的調節可以在簡報的補充時間表中找到。

With that, I'll turn the call over to Octavio.

這樣，我會將電話轉給奧克塔維奧。

Thank you, Chris. And thank you all for joining us today. I am happy to have our new Chief Financial Officer, Tom Timko, with me this morning for our first earnings call together.

謝謝你，克里斯。感謝大家今天加入我們。我很高興今天早上我們的新任財務長 Tom Timko 與我一起參加我們的第一次財報電話會議。

Before we discuss the quarterly results, I wanted to give Tom an opportunity to introduce himself and share some key takeaways from his first couple of months on the job. Tom?

在我們討論季度業績之前，我想給湯姆一個自我介紹的機會，並分享他入職後頭幾個月的一些重要收穫。湯姆？

Thanks, Octavio. I want to start out by thanking the leadership team for welcoming me to the company. It has been an extremely productive first 60 days or so on the job. So far, my most encouraging takeaway is seeing confirmation and reinforcement of my initial rationale for joining the company.

謝謝，奧克塔維奧。首先，我要感謝領導團隊歡迎我加入公司。工作的前 60 天左右是非常有成效的。到目前為止，我最鼓舞人心的收穫是看到我加入公司的最初理由得到了確認和強化。

In my previous roles at GE and GM, I helped lead successful multi-year transformations. I see many of the same characteristics developing here as I saw from my prior experiences, profitable revenue growth, margin expansion, and improving free cash flow. This, coupled with bringing a more disciplined and linear approach to how we run the business, will reduce our dependency on a historically strong 4Q and create the opportunity to unlock significant shareholder value.

在我之前在通用電氣和通用汽車的職位中，我幫助領導了成功的多年轉型。我在這裡看到了許多與我之前的經驗相同的特徵：獲利收入成長、利潤率擴張和自由現金流的改善。再加上我們對業務運作方式採取更嚴格和線性的方法，將減少我們對歷史上強勁的第四季的依賴，並創造釋放重要股東價值的機會。

That's what excites me the most about being here, and I'm looking forward to many more earnings calls and investor meetings to share our progress with you. Octavio, back to you.

這是我來到這裡最興奮的地方，我期待更多的財報電話會議和投資者會議與您分享我們的進展。奧克塔維奧，回到你身邊。

Thanks, Tom, and again, we're happy to have you with us.

謝謝，湯姆，再一次，我們很高興有你和我們在一起。

Now to begin on slide 4. Second quarter results were strong, as we remained focused on serving our customers and continued to improve our operational execution. Our efforts are generating positive results as we finished the first half with strong profitability and record free cash flow performance.

現在從投影片 4 開始。第二季業績強勁，因為我們仍然專注於服務客戶並繼續改善我們的營運執行力。我們的努力正在產生積極的成果，上半年我們實現了強勁的獲利能力和創紀錄的自由現金流表現。

The combination of our market-leading product and service solutions, along with the team's commitment to continuous improvement, provides a strong foundation for long-term performance.

我們市場領先的產品和服務解決方案與團隊對持續改善的承諾相結合，為長期績效奠定了堅實的基礎。

Given our strong year-to-date execution, we are updating our 2024 financial outlook to reflect higher profitability. We are well-positioned for future success and are focused on continuing our momentum into the second half of the year.

鑑於我們今年迄今的強勁執行力，我們正在更新 2024 年財務展望，以反映更高的獲利能力。我們已為未來的成功做好了充分準備，並致力於將我們的勢頭延續到今年下半年。

Our efforts are also building a stronger company for our employees and our customers. We are focused on executing and our teams are building a renewed sense of pride and openness to adopt a continuous improvement mindset. We can all see the early returns of our work as evidenced by our first half performance.

我們的努力也為我們的員工和客戶打造了更強大的公司。我們專注於執行，我們的團隊正在建立新的自豪感和開放感，以採取持續改進的心態。我們都可以從上半年的表現中看到我們工作的早期回報。

Customers remain at the center of everything we do and we continue winning in the market. Second quarter product backlog remains above $1 billion. A strong demand environment in banking for DN series ATMs is helping offset market-related product revenue headwinds in retail. However, we remain positive on the long-term outlook for the retail self-service market. This points to the balance in our model and the benefit of end market diversification, which has allowed us to drive higher profitability for the year.

客戶始終是我們一切工作的中心，我們將繼續贏得市場。第二季產品積壓仍超過 10 億美元。銀行業對 DN 系列 ATM 的強勁需求環境正在幫助抵消零售業與市場相關的產品收入阻力。然而，我們對零售自助服務市場的長期前景仍然持樂觀態度。這表明我們模型的平衡以及終端市場多元化的好處，這使我們能夠在今年實現更高的獲利能力。

When I came on board as CEO, I tasked the retail leadership team with becoming the number one self-checkout shipment provider in Europe. The 2023 RBR retail market update confirmed the team achieved this remarkable milestone. And now our attention turns to accelerating growth in the Americas. I am proud of our team as we keep building operating momentum each quarter and stay focused on delivering for our customers.

當我擔任執行長時，我給零售領導團隊下達了成為歐洲第一的自助結帳運輸提供者的任務。2023 年 RBR 零售市場更新證實該團隊實現了這一非凡的里程碑。現在我們的注意力轉向美洲的加速成長。我為我們的團隊感到自豪，因為我們每個季度都在不斷增強營運動力，並始終專注於為客戶提供服務。

Moving to slide 5. Two quarters ago, we introduced the DN flywheel to help us visualize our longer-term continuous improvement objectives. The flywheel always starts with people who make Diebold Nixdorf a great company. We are investing in our people, so we can implement world-class operations, create leading-edge products and deliver superior service.

轉到投影片 5。兩個季度前，我們推出了 DN 飛輪，以幫助我們視覺化長期持續改善目標。飛輪始終始於那些使 Diebold Nixdorf 成為一家偉大公司的人。我們投資於我們的員工，以便我們能夠實施世界一流的營運、創造領先的產品並提供卓越的服務。

In addition to bringing Tom in as our CFO, we also added to the team a Vice President of Global Lean and Kaizen Promotion, who is accelerating the adoption of continuous improvement across the company.

除了聘請 Tom 擔任我們的財務長之外，我們還在團隊中增加了一位全球精益和改善推廣副總裁，他正在加速在整個公司範圍內採用持續改進。

At the board level, this morning, we announced the addition of two new directors, Maura Markus and Colin Parris. Their extensive experience in banking and technology sectors, with Maura coming from Bank of the West and Citigroup and Colin from GE and IBM, will be significant assets and will further strengthen our already strong board.

今天早上，在董事會層面，我們宣布增加兩名新董事：莫拉·馬庫斯 (Maura Markus) 和科林·帕里斯 (Colin Parris)。他們在銀行和科技領域的豐富經驗，其中莫拉來自西方銀行和花旗集團，科林來自通用電氣和IBM，將是重要的資產，並將進一步加強我們本已強大的董事會。

We will continue to develop and attract new talent to the company that will help us deliver profitable revenue growth, gross margin expansion, and improve free cash flow conversion.

我們將繼續為公司培養和吸引新人才，這將有助於我們實現盈利性收入成長、毛利率擴張並改善自由現金流轉換。

We continue to see strong demand for our DN series ATMs and increased adoption of recycling technology. Banking product revenue is up 16% year over year and banking product gross margin is up 770 basis points. This is a good example of DN's innovation driving profitable and more linear revenue.

我們繼續看到對 DN 系列 ATM 的強勁需求以及回收技術的採用不斷增加。銀行產品收入年增16%，銀行產品毛利率成長770個基點。這是 DN 創新推動獲利和更線性收入的一個很好的例子。

A consistent theme you will hear throughout today's call is improved operating profit driven by gross margin expansion and operating expense discipline. Our service margin continues to improve sequentially while we remain focused on exceeding customer requirements.

在今天的電話會議中，您將聽到的一個一致主題是毛利率擴張和營運費用紀律推動了營運利潤的提高。我們的服務利潤率持續提高，同時我們仍專注於超越客戶的要求。

To better serve our customers, we are investing in our North America service organization by implementing a cloud-based service suite to further improve customer support. This will help our field technicians, dispatch centers and health desks serve our customers more effectively, while also driving efficiencies across our operations.

為了更好地服務我們的客戶，我們正在投資我們的北美服務組織，實施基於雲端的服務套件，以進一步改善客戶支援。這將有助於我們的現場技術人員、調度中心和醫療服務台更有效地為客戶提供服務，同時提高我們的營運效率。

Moving to slide 6. While we are in the early stages of implementing lean operations, I continue to be very encouraged by the developments we have seen so far. Our teams are prioritizing safety, quality, delivery and cost.

轉到投影片 6。雖然我們正處於實施精實營運的早期階段，但我仍然對我們迄今為止所看到的發展感到非常鼓舞。我們的團隊優先考慮安全、品質、交付和成本。

Our North Canton manufacturing team has completed seven Kaizen events. On the slide, we are showing an example of the ATM lock assembly Kaizen, where we implemented five safety enhancements and improved manufacturing efficiency and cost.

我們的北廣州製造團隊已完成七項 Kaizen 活動。在投影片上，我們展示了 ATM 鎖組件 Kaizen 的範例，其中我們實施了五項安全增強措施，並提高了製造效率和成本。

We plan to roll out similar events in Paderborn in the second half of the year. These examples are helping set the standard of expectation for the rest of our company. And we are just in the beginning of what I think is possible across our global footprint as our teams embrace this operating mindset.

我們計劃下半年在帕德博恩舉辦類似的活動。這些例子有助於為我們公司的其他部門設定期望標準。我認為，隨著我們的團隊接受這種營運思維，我們在全球足跡中的可能性才剛開始。

With that, I will turn the call over to Tom to go through our financial results.

這樣，我會將電話轉給湯姆，讓他查看我們的財務表現。

Thanks, Octavio. Starting on slide 7 with an overview of our non-GAAP results, the second quarter represents another strong performance as we remain focused on our continuous improvement flywheel and work towards more linear quarters.

謝謝，奧克塔維奧。從幻燈片 7 開始，我們概述了我們的非 GAAP 業績，第二季度代表了另一個強勁的業績，因為我們仍然專注於持續改進飛輪並努力實現更線性的季度。

Revenue of $940 million increased 2.4% and gross margin expanded by 300 basis points year over year. Gross margin has now expanded sequentially for six straight quarters and year over year.

營收為 9.4 億美元，年增 2.4%，毛利率年增 300 個基點。毛利率現已連續六季持續成長，且較去年同期成長。

Banking continues to generate disciplined, profitable revenue growth driven by our DN series units and improving service performance. This was partially offset by retail product market headwinds and our decision to no longer participate in certain lower margin third-party sales.

在我們的 DN 系列設備和不斷提高的服務績效的推動下，銀行業持續實現有序、有利可圖的收入成長。這被零售產品市場的逆風和我們決定不再參與某些利潤率較低的第三方銷售所部分抵消。

Year-over-year, gross profit improvement was primarily driven by benefits from our supply chain and logistics initiatives combined with pricing discipline. Also, service gross margin was up year over year, reflecting the benefit of our service improvement efforts. In North America, this is now our second consecutive quarter of improvement.

與去年同期相比，毛利的改善主要是由我們的供應鏈和物流計劃以及定價規則帶來的好處所推動的。此外，服務毛利率年增，反映出我們服務改善努力的效益。在北美，這是我們連續第二季取得進步。

Operating expense was flat compared to the prior year. Maintaining operating expense discipline has been a focus area for the company as we look to improve our operating leverage.

營業費用與上年持平。在我們尋求提高營運槓桿的過程中，維持營運費用紀律一直是公司的重點領域。

As a result, adjusted EBITDA of $119 million is up 41% compared to prior year and up 15% sequentially. Adjusted EBITDA margin expanded 340 basis points to 12.6% year over year and 110 basis points sequentially.

因此，調整後 EBITDA 為 1.19 億美元，比上年成長 41%，比上一季成長 15%。調整後 EBITDA 利潤率年增 340 個基點至 12.6%，季增 110 個基點。

Looking at free cash flow, second quarter was a use of only $16 million, which was favorable by $237 million year over year. The favorable performance was driven by our efforts to have more linear quarterly cash flow, combined with higher EBITDA and better working capital efficiency.

從自由現金流來看，第二季僅使用了 1,600 萬美元，年增了 2.37 億美元。良好的業績得益於我們努力實現更線性的季度現金流，以及更高的 EBITDA 和更好的營運資金效率。

Moving to slide 8 and our year-to-date results. Higher revenue and gross margin expansion from our continuous improvement initiatives, combined with disciplined operating expense management, is flowing through to the bottom line, resulting in strong year-over-year growth in profitability and free cash flow.

轉到幻燈片 8 和我們今年迄今為止的結果。我們的持續改善措施帶來了更高的收入和毛利率擴張，再加上嚴格的營運費用管理，正在滲透到利潤中，導致盈利能力和自由現金流同比強勁增長。

Adjusted EBITDA of $222 million is up 50% compared to the prior year and adjusted EBITDA margin expanded 370 basis points to 12.1%. Year-to-date, levered free cash flow, a use of $53 million, represents a record first half cash flow performance for the company. On an unlevered basis, free cash flow was positive $24 million for the first half of the year, which is a meaningful achievement given our historical seasonality.

調整後 EBITDA 為 2.22 億美元，較上年成長 50%，調整後 EBITDA 利潤率擴大 370 個基點，達到 12.1%。年初至今，槓桿自由現金流使用量為 5,300 萬美元，代表該公司上半年現金流表現創歷史新高。在無槓桿的基礎上，今年上半年的自由現金流為正 2,400 萬美元，考慮到我們的歷史季節性，這是一項有意義的成就。

Turning to slide 9, banking delivered another outstanding performance this quarter. Revenue of $707 million was up 6.4% versus the prior year, driven primarily by product revenue growth of 15.6%. Favorable product mix from higher cash recyclers and improved service performance drove year-over-year revenue growth.

轉向投影片 9，銀行業本季再次表現出色。營收為 7.07 億美元，較上年增長 6.4%，主要是由於產品收入增長 15.6%。來自較高現金回收商的有利產品組合和改善的服務績效推動了營收年增。

Banking gross profit increased by $33 million year over year to $198 million, and gross margin expanded 310 basis points, demonstrating improved operating leverage. Significant product gross margin expansion was due to greater input cost control and continued pricing rigor. Banking service gross margin, which has been a focus area for driving improvement, was up 20 basis points year over year and up 70 basis points sequentially. We expect to see continued improvement in service gross margin going into the second half of the year.

銀行業毛利年增 3,300 萬美元，達到 1.98 億美元，毛利率擴大 310 個基點，營運槓桿改善。產品毛利率的顯著成長歸因於更嚴格的投入成本控制和持續嚴格的定價。銀行服務毛利率一直是推動改善的重點領域，較去年同期成長20個基點，較上季成長70個基點。我們預計下半年服務毛利率將持續改善。

Moving to slide 10, retail performance has been impacted by product market headwinds, partially offset by positive trends in service. Retail revenue of $232 million was down 8% versus the prior year as growth in service revenue of 2.9% was more than offset by product revenue decreasing 20.5%. Product revenue declined due to lower self-service shipments as customers completed large multi-year rollouts and our decision to selectively exit lower margin third party hardware sales.

轉向投影片 10，零售績效受到產品市場逆風的影響，但部分被服務業的正面趨勢所抵銷。零售收入為 2.32 億美元，比上年下降 8%，原因是服務收入 2.9% 的成長被產品收入下降 20.5% 所抵銷。由於客戶完成了多年的大規模部署，以及我們決定選擇性地退出利潤率較低的第三方硬體銷售，導致自助服務出貨量下降，導致產品收入下降。

Despite this, retail profitability still improved with gross margin of 27.2% in the quarter. This is up 220 basis points year over year and up 80 basis points sequentially. The main driver of the improvement is lower product input costs from our supply chain and logistics initiatives. We are seeing some softness in our self-checkout demand after two straight years of strong unit deliveries. Overall, we're still seeing good growth in retail service business from our growing install base and improving product profitability is supporting gross profit.

儘管如此，零售獲利能力仍有改善，本季毛利率為 27.2%。較去年同期成長 220 個基點，較上季成長 80 個基點。改善的主要驅動力是我們的供應鏈和物流計劃降低了產品投入成本。在連續兩年強勁的單位交付量之後，我們看到自助結帳需求出現了一些疲軟。總體而言，由於我們不斷增長的安裝基礎，我們仍然看到零售服務業務的良好增長，並且產品盈利能力的提高支撐著毛利。

We believe that despite the market challenges in retail, we remain positive on the long-term outlook for investment in self-service and automation at the checkout as retailers continually look to increase efficiency and improve the customer and consumer experience.

我們相信，儘管零售業面臨市場挑戰，但我們對自助服務和結帳自動化投資的長期前景仍然持樂觀態度，因為零售商不斷尋求提高效率並改善客戶和消費者體驗。

On slide 11, we introduced this table to present a more complete view of the changes in our cash position and highlight our efforts to drive more linear free cash flow across each quarter.

在投影片 11 中，我們引入了此表格，以更全面地了解我們的現金部位變化，並強調我們為推動每季更線性的自由現金流所做的努力。

As a reminder, in the past, we historically had substantial quarterly volatility in our free cash flow that resulted in significant cash use through the first three quarters of the year before generating a majority of our free cash flow in the fourth quarter. The company is now in a better position to efficiently manage cash flow with improved commercial and operating rigor.

提醒一下，過去，我們的自由現金流量歷來存在大幅季度波動，導致今年前三個季度大量使用現金，然後在第四季度產生大部分自由現金流量。該公司現在能夠更好地有效管理現金流，並提高商業和營運的嚴謹性。

As we pointed out already, you can see evidence of our significant progress in the first half of the year. This positions us well to deliver on our full year commitment of greater than 25% free cash flow conversion.

正如我們已經指出的，您可以看到我們在今年上半年取得的重大進展的證據。這使我們能夠很好地兌現全年自由現金流轉換率超過 25% 的承諾。

Looking beyond 2024, we expect to achieve greater free cash flow conversion over the next 12 to 24 months of approximately 50% of adjusted EBITDA by driving higher profitability through continued margin expansion, continued working capital efficiency, reduced restructuring and professional fees, lower debt costs with anticipated 1Q 2025 refinancing, and eliminating non-recurring payments to certain vendors related to our corporate restructuring.

展望2024 年後，我們預計在未來12 至24 個月內實現更大的自由現金流轉換，即調整後EBITDA 的約50%，透過持續的利潤率擴張、持續的營運資金效率、減少重組和專業費用、降低債務成本來提高盈利能力預計 2025 年第一季再融資，並消除與我們公司重組相關的某些供應商的非經常性付款。

Lastly, we ended the second quarter with cash and short-term investments of approximately $369 million and net leverage improved slightly to 1.5 times.

最後，我們在第二季結束時擁有約 3.69 億美元的現金和短期投資，淨槓桿率略有提高至 1.5 倍。

On slide 12, as a result of our outstanding performance year-to-date and our expectations for the second half, we are updating our outlook to reflect higher profitability for the year.

在幻燈片 12 上，由於我們今年迄今為止的出色表現以及我們對下半年的預期，我們正在更新我們的前景，以反映今年更高的盈利能力。

We are expecting full-year adjusted EBITDA to be in the range of $435 million to $450 million, which is up from our previous guidance of $410 million to $435 million. Our continued focus on gross margin expansion through supply chain and logistic improvements and service excellence, combined with maintaining cost discipline, is generating higher profitability for the year.

我們預計全年調整後 EBITDA 將在 4.35 億美元至 4.5 億美元之間，高於我們先前指引的 4.1 億美元至 4.35 億美元。我們繼續專注於透過供應鏈和物流改進以及卓越服務來擴大毛利率，再加上保持成本控制，今年將產生更高的獲利能力。

We are also updating our full-year revenue outlook from our previous guidance of low single-digit growth to flat, while we continue to see strength in banking for the full year which is expected to grow in the low-single-digits. This growth is being offset by retail product market headwinds and a modest 0.5% to 1% unfavorable impact from FX.

我們也將全年營收前景從先前的低個位數成長指引調整為持平，同時我們繼續看到全年銀行業的強勁勢頭，預計將以低個位數成長。這一成長被零售產品市場的逆風和匯率帶來的 0.5% 至 1% 的適度不利影響所抵消。

So when taking our updated revenue outlook in conjunction with our updated adjusted EBITDA guidance, we are expecting roughly 8.5% to 12% year-over-year growth and adjusted EBITDA on flat revenue. This speaks to the power of our continuous improvement journey and the operating leverage our business model can deliver.

因此，當我們將更新後的營收前景與更新後的調整後 EBITDA 指引結合時，我們預計將年增約 8.5% 至 12%，調整後 EBITDA 營收持平。這說明了我們持續改善之旅的力量以及我們的業務模式可以提供的營運槓桿。

Lastly, as I already covered, we continue to target free cash flow conversion of greater than 25% of adjusted EBITDA in 2024.

最後，正如我已經介紹過的，我們繼續目標是到 2024 年自由現金流轉換率超過調整後 EBITDA 的 25%。

With that, I'll turn the call back to Octavio.

這樣，我會將電話轉回給奧克塔維奧。

Thank you, Tom. To wrap things up, we have lots to be excited about. We are a stronger company for our customers and employees and have improved our operational execution. We continue to believe there are highly attractive aspects of our value creation story that make for a compelling investment thesis at our current trading levels.

謝謝你，湯姆。總而言之，我們有很多值得興奮的事情。對於我們的客戶和員工來說，我們是一家更強大的公司，並且提高了我們的營運執行力。我們仍然相信，我們的價值創造故事中有一些極具吸引力的方面，這些方面在我們當前的交易水平上構成了令人信服的投資論點。

This story is built around five components. Our product backlog of approximately $1 billion provides good coverage for product revenue for the remainder of the year. Also, approximately 70% of our total higher margin service revenue is recurring, which provides additional stability to our performance.

這個故事圍繞著五個部分。我們約 10 億美元的產品積壓為今年剩餘時間的產品收入提供了良好的保障。此外，我們的高利潤服務總收入中約 70% 是經常性的，這為我們的績效提供了額外的穩定性。

We are clearly accelerating gross margin expansion with our continuous improvement programs and maintaining operating expense discipline. We will continue to improve our profitability as our teams embrace this operating mindset.

透過持續改善計畫和維持營運費用紀律，我們顯然正在加速毛利率的擴張。隨著我們的團隊接受這種經營理念，我們將繼續提高獲利能力。

As outlined on the call today, we have a number of levers available to us to meaningfully improve free cash flow generation. We are building a value creating capital allocation strategy that will benefit all our stakeholders. As free cash flow conversion improves, we will invest in the business and unlock additional value for our stockholders. This is the next stage of our value creation story.

正如今天的電話會議中所述，我們有許多可用的槓桿來有效地改善自由現金流的產生。我們正在製定一項創造價值的資本配置策略，這將使我們所有的利害關係人受益。隨著自由現金流轉換的改善，我們將投資該業務並為股東釋放額外價值。這是我們價值創造故事的下一個階段。

Lastly, we are strengthening our leadership team, building our bench of talent and surrounding the team with skilled and experienced corporate governance. Our new management team, with the guidance of our Board of Directors, has put the company on an exciting path forward.

最後，我們正在加強我們的領導團隊，建立我們的人才庫，並為團隊提供技術精湛、經驗豐富的公司治理。我們的新管理團隊在董事會的指導下，使公司走上了一條令人興奮的前進道路。

And with that, operator, please open the call for questions.

那麼，接線員，請打開電話提問。

(Operator Instructions) Matt Summerville, D.A. Davidson.

（操作員說明）Matt Summerville，D.A.戴維森。

Yeah, thanks. Maybe, Octavio, I always find it useful when talking about the banking business. Just if you take a step back and maybe talk about – maybe do a walk around the regions, if you will, and talk about what you're seeing in a little bit more detail as to demand trends across the globe.

是的，謝謝。也許，奧克塔維奧，我在談論銀行業務時總是覺得它很有用。如果你退後一步，也許可以談談——如果你願意的話，可以在這些地區走一走，並更詳細地談談你所看到的全球需求趨勢。

Why don't we start with North America, where, again, as I said in prior quarters, the adoption of recycling continues to be strong, where not only now the big banks are embracing the technology, but we see that trickling down to the smaller banks across the North America landscape. So North America demand remains healthy for us.

為什麼我們不從北美開始，正如我在前幾個季度所說的那樣，回收的採用仍然很強勁，現在不僅大銀行正在擁抱這項技術，而且我們看到它正在滲透到北美地區規模較小的銀行。因此，北美需求對我們來說仍然健康。

As you know, Latin America is still a very heavy cash usage market, and we continue to see strength in that market, both in the product sales as well as in service growth.

如您所知，拉丁美洲仍然是一個現金使用量非常大的市場，我們繼續看到該市場的實力，無論是在產品銷售還是在服務成長方面。

Important to note that, for sales, very important market for us, we're expecting, again, significant growth in that business as big government contracts will come up in the coming period. So we're excited about Latin America.

值得注意的是，對於銷售來說，這是對我們來說非常重要的市場，我們再次預計，隨著大型政府合約將在未來一段時間內出現，該業務將顯著成長。所以我們對拉丁美洲感到興奮。

Europe remains very stable, and it's been actually a pleasant surprise how demand has –shaping up in Europe, and we see momentum in the market with significant wins as some customers continue with those pooling exercises around their network, but choose our DN series recyclers as the kind of key point on how they will build their new infrastructure.

歐洲仍然非常穩定，歐洲的需求成長實際上令人驚喜，我們看到市場勢頭強勁，取得了重大勝利，因為一些客戶繼續在其網路周圍進行這些池化活動，但選擇了我們的 DN 系列回收商作為他們如何建設新基礎設施的關鍵點。

And lastly, Asia-Pacific. As you know, we've made significant efforts to reenter some of the Asian markets, in particular India, where we're now happy to be working with one of the largest deployers of ATMs in the world and gaining business with them.

最後是亞太地區。如您所知，我們為重新進入一些亞洲市場做出了巨大努力，特別是印度，我們現在很高興與世界上最大的 ATM 部署商之一合作並與他們獲得業務。

Again, in Asia-Pac, there's probably more business to be had, but we're being very, very disciplined around not pursuing business that does not meet our profitability profile. As you know, that's a very competitive market, so we want to make sure that, as we grow in that market, we do it in a very profitable way.

同樣，在亞太地區，可能有更多的業務要做，但我們非常非常自律，不追求不符合我們獲利能力的業務。如您所知，這是一個競爭非常激烈的市場，因此我們希望確保，隨著我們在該市場的發展，我們能夠以非常有利可圖的方式開展業務。

So overall, I would say demand environment for banking remains positive, and it's built on the back of a good story around recycling and our DN series technology.

因此，總體而言，我認為銀行業的需求環境仍然積極，這是建立在圍繞回收和我們的 DN 系列技術的良好故事的基礎上的。

Thanks for that color. Maybe moving over to retail, just talk about how customer conversations have evolved in that business over the last 90 to 180 days, and how the tone on investments may be at least temporarily changing. And does this give you an early kind of view on what you think happens in the market in 2025?

謝謝那個顏色。也許轉向零售業，只需談談過去 90 到 180 天內該行業的客戶對話如何演變，以及投資基調可能至少暫時發生變化。這是否能讓您對 2025 年市場發生的情況有初步的了解？

Is this more of a transition year where you've had -- I don't know how many years in a row now, but record shipments in self-checkout for the last 10 years or something like that? Is this a discernible change in trend or is this more of a pause, I guess, is what I'm trying to get a feel for here.

今年是否更像是過渡年，我不知道現在已經連續多少年在自助結帳中記錄過去 10 年的發貨量或類似的情況？我想，這是趨勢的明顯變化還是這更像是一種停頓，這就是我在這裡試圖感受的。

So Matt, we've had probably two years of record shipments for us at Diebold Nixdorf around our self-checkout solutions. We made the conscious decision to become number one in Europe, a task that I gave the team two years ago and that they have now achieved. Now our emphasis turns into how do we accelerate growth in the Americas market.

馬特，迪堡德利多富 (Diebold Nixdorf) 的自助結帳解決方案已經連續兩年創下出貨量紀錄。我們有意識地決定成為歐洲第一，這是我兩年前給團隊的任務，他們現在已經實現了。現在我們的重點變成如何加速美洲市場的成長。

Looking at the perspectives of the market, it is clear that this year we've seen a slight slowdown in customer decisions. With that said, we haven't seen a slowdown in pipeline generation, so we still see a very healthy pipeline. It's just taking customers a little bit longer to make those purchase decisions.

從市場的角度來看，很明顯，今年我們看到客戶決策略有放緩。話雖如此，我們並沒有看到管道生成速度放緩，所以我們仍然看到一個非常健康的管道。只是客戶需要更長的時間才能做出購買決定。

One important trend that we see is customers are looking for more robust solutions that integrate hardware, software, and services. So currently, we have several pilots going on with our AI shrink solution. So again, while that puts a little bit of a slowdown on the purchasing decision, we believe it will create a much more sticky solution going forward.

我們看到的一個重要趨勢是客戶正在尋找整合硬體、軟體和服務的更強大的解決方案。目前，我們的人工智慧縮小解決方案正在進行多個試點。因此，雖然這會稍微放慢購買決策的速度，但我們相信這將在未來創造一個更具黏性的解決方案。

And as I look at the industry reports, we did see a slowdown in 2024 after many years of high growth. But it is the analyst's view and also my view that in 2025 the market resumes a more healthy growth rate than we're preparing ourselves for that.

當我查看行業報告時，我們確實看到在經歷了多年的高成長之後，2024 年將出現放緩。但分析師和我的觀點是，到 2025 年，市場將恢復比我們準備好的更健康的成長率。

Thanks. Maybe I'll just sneak one more. And just talking about services gross margin. You saw a little bit of year-over-year inflection for the first time in, I don't know, probably three years, something like that. You saw a nice sequential bump up. How far away are we from seeing services' gross margin sustainably back in that low 30s range? Is that something we can look to in 2025 or is that something beyond that?

謝謝。也許我會再偷偷拿一張。只是談論服務毛利率。我不知道，可能是三年來，你第一次看到了逐年的變化，類似的事情。你看到了一個很好的連續上升。我們距離服務業毛利率可持續回到 30 多歲的低水準還有多遠？這是我們 2025 年可以期待的事情還是超越這個目標的事情？

Yeah, so remember, Matt, there's one key thing that I want to make sure I mention, and then I'll turn it over to Tom to talk a little bit about the finances around the service business. I am very focused on making sure that every action taken in service keeps the customer at the center of everything we do. So improving SLAs, making sure that we're meeting or exceeding customer requirements continues to be my number one priority.

是的，所以請記住，馬特，我想確保提到一件關鍵的事情，然後我會將其交給湯姆，談談服務業務的財務狀況。我非常注重確保服務中採取的每項行動都將客戶置於我們所做的一切的中心。因此，改進 SLA、確保我們滿足或超越客戶要求仍然是我的首要任務。

I mentioned during the call, we keep investing in technology to better serve our customers. So we've just completed the rollout in parts of our North America market of our new cloud-based solution to run our service operations that will help our technicians, call centers. Help us serve the customers better, but also be more efficient. So that's kind of the basis. Everything we do in services will always have a strong focus on meeting or exceeding customer requirements.

我在電話中提到，我們不斷投資技術以更好地服務我們的客戶。因此，我們剛剛在北美部分市場完成了基於雲端的新解決方案的推出，以運行我們的服務運營，這將為我們的技術人員和呼叫中心提供協助。幫助我們更好地服務客戶，同時也更有效率。這就是基礎。我們在服務領域所做的一切都將始終注重滿足或超越客戶的要求。

With that said, our goal is to be north of 30% in our service margins. So I'll turn it over to Tom to give some color around that.

儘管如此，我們的目標是服務利潤率達到 30% 以上。所以我會把它交給湯姆，讓他對此進行一些說明。

Thanks, Octavio. Q2 service gross margin, we ended up at 28.8%, up 10 basis points year over year. Really encouraging as it indicates we're rebounding from the issues we highlighted previously in North America marketplace that were weighing on results, right? Really a direct result of our continuous improvement as the teams work to drive sequential quarter growth in gross margin, while improving customer quality and some of the SLAs that we monitor.

謝謝，奧克塔維奧。第二季服務毛利率為28.8%，較去年成長10個基點。確實令人鼓舞，因為它表明我們正在從之前在北美市場強調的影響業績的問題中反彈，對吧？這確實是我們持續改善的直接結果，因為團隊致力於推動毛利率連續季度成長，同時提高客戶品質和我們監控的一些 SLA。

We are, like Octavio alluded to, targeting to finish Q4 with a 30% gross margin, then this will position us to drive towards 30% for the full year in 2025. Still more work to do this year, but that's what we're driving to.

正如奧克塔維奧所提到的那樣，我們的目標是在第四季末實現 30% 的毛利率，這將使我們能夠在 2025 年全年實現 30% 的毛利率。今年還有更多工作要做，但這就是我們的目標。

So Matt, to be clear, our target is to end the year and start the year at that level and be able to drive that same level throughout 2025.

馬特，需要明確的是，我們的目標是在今年年底和年初保持這一水平，並能夠在 2025 年保持同樣的水平。

(Operator Instructions) Matt Bryson, Wedbush Securities.

（操作員指令）Matt Bryson，Wedbush 證券公司。

Hey, good morning, and thanks for taking my questions. I just want to start on the retail side. Can you provide a bit more color in terms of revenue being a bit lighter than you expected. How much of that was the decision to walk away from that third party business versus how much of that was the environment just being a bit softer than you thought it would be?

嘿，早上好，感謝您回答我的問題。我只想從零售方面開始。您能否就收入比您預期的要少一點提供更多的資訊。其中有多少是因為決定放棄第三方業務，有多少是因為環境比您想像的要軟一些？

Yeah, thanks, Matt. Look, in rough terms, the decrease is 60/40 between checkout hardware and third-party sales. And remember, that was a decision to walk away from some of the lower margin third party sales.

是的，謝謝，馬特。粗略地看，結帳硬體和第三方銷售之間的下降幅度為 60/40。請記住，這是放棄一些利潤較低的第三方銷售的決定。

Yes, I just -- when you're talking about the environment being a bit softer, do you see that as being the broader market? I know you talked a bit about the success you've seen in the last couple years and so maybe a bit of a pause. And Octavio talked about elongating pipelines, but is that something broader that's going on that you would say is macro based? Is it shifts in technology? I guess, what do you see is the dynamics that are causing things to be a little bit softer than you might have anticipated three months ago?

是的，我只是——當你談論環境變得更加疲軟時，你認為這是更廣闊的市場嗎？我知道您談到了過去幾年所取得的成功，因此可能需要暫停一下。奧克塔維奧談到了延長管道，但你會說這是基於宏觀的更廣泛的事情嗎？是技術的轉變嗎？我想，您認為是什麼動力導致事情比您三個月前的預期要軟一些？

Matt, I would say that, for one, we see customers still very, very positive about deploying self-service technology at the checkout point. I think what's happening now is (technical difficulty) whole checkout environment in a more holistic way and trying to balance their investments on how many traditional lanes, how many self-checkout devices that we have. Clearly, the economics always favor the self-checkout lanes and also customer behavior is favoring that.

馬特，我想說，一方面，我們看到客戶對於在結帳點部署自助服務技術仍然非常非常積極。我認為現在正在發生的事情是（技術難度）以更全面的方式建立整個結帳環境，並試圖平衡他們對多少傳統通道、我們擁有多少自助結帳設備的投資。顯然，經濟總是有利於自助結帳通道，而且客戶行為也有利於這一點。

But our clients are looking at how do I improve that experience. How do I make it more frictionless? I think that's where a lot of our software, a lot of the innovation that we're bringing in the modularity of the devices starts to play in. It does create a little bit of a longer sales cycle for us. But at the end, I think it creates a more robust solution for customers and something that actually helps them serve their own customers better in the end markets.

但我們的客戶正在考慮如何改善這種體驗。如何讓它更無摩擦？我認為這就是我們的許多軟體、我們在設備模組化中引入的許多創新開始發揮作用的地方。它確實為我們創造了更長的銷售週期。但最終，我認為它為客戶創造了一個更強大的解決方案，並且實際上可以幫助他們在終端市場更好地服務自己的客戶。

Got it. Appreciate the color. Shifting over to the improved EBITDA guidance, it feels like that's pretty much explicitly your being more optimistic about where you're able to drive gross margins over the back half of the year. Any chance you can provide a bit more kind of explicit color around what improvements might look like and how much of them coming from product versus how much are coming from services?

知道了。欣賞顏色。轉向改進後的 EBITDA 指導，感覺這非常明確地表明您對下半年毛利率的提升更加樂觀。您是否有機會提供更明確的顏色來說明改進可能會是什麼樣子，以及其中有多少來自產品，有多少來自服務？

Yeah, so probably in general terms, Matt, remember when we started the year, we were targeting to end the year at 30%, around 30% service margin and we're still kind of trending in that direction.

是的，所以大概籠統地說，馬特，記得當我們年初時，我們的目標是年底達到 30%，大約 30% 的服務利潤率，而且我們仍然朝著這個方向發展。

On the product side, we do see stronger product margins going forward. We've always talked about product margins being in the low 20s. Now we're in the mid-20s and we believe that that is very sustainable going forward. So I would say that that's kind of the big picture.

在產品方面，我們確實看到未來產品利潤率會更高。我們總是談論產品利潤率在 20 左右。現在我們已經二十多歲了，我們相信這在未來是非常永續的。所以我想說這就是大局。

Maybe I'll turn it over to Tom, if he has any additional comment on that.

如果湯姆對此有任何補充意見，也許我會把它交給湯姆。

Look, I would just add a little bit on the product gross margin. Q2 product gross margin, 26.4%, up 700 basis points year over year. Really being driven by the benefit of our supply chain logistics programs that are lowering the input cost to produce as well as really just continuing to drive pricing discipline throughout.

聽著，我只想在產品毛利率上加一點。Q2產品毛利率為26.4%，較去年同期上升700個基點。真正受到我們供應鏈物流計劃的好處的驅動，這些計劃降低了生產的投入成本，並且實際上只是繼續推動整個定價紀律。

Look, the mix is going to is going to vary a little bit quarter to quarter and we're working to sustain margins at these current levels and then drive small incremental improvements through our continuous improvement flywheel efforts.

看，每個季度的組合都會略有不同，我們正在努力將利潤維持在當前水平，然後透過我們不斷改進飛輪的努力推動小幅增量改進。

I guess my last question is just on the backlog side. So backlog is still relatively robust but keeps on trending down somewhat quarter on quarter. I guess, Octavio, my question there is, it's not this year question, but when you get into 2025 and that backlog hits normal levels, how confident are you that you can sustain your banking revenue at kind of current run rates versus banking revenue just comes off because you don't have that additional backlog to ship out of anymore?

我想我的最後一個問題只是關於積壓方面。因此，積壓仍然相對強勁，但逐季呈現下降趨勢。我想，奧克塔維奧，我的問題是，這不是今年的問題，而是當你進入2025 年並且積壓達到正常水平時，你對以當前運行率維持銀行收入與銀行收入相比有多大信心？

Yeah. So Matt, I would say that one of the most important things for me is, and we talked a little bit about this, Tom mentioned it in his remark, is creating this linear revenue profile. As you know, historically, the company has very weak Q1, very strong Q4 and a huge difference between the quarters.

是的。所以馬特，我想說對我來說最重要的事情之一是，我們對此進行了一些討論，湯姆在他的評論中提到，正在創建這種線性收入狀況。如您所知，從歷史上看，該公司的第一季非常疲軟，第四季度非常強勁，並且各季度之間存在巨大差異。

What we're trying to do is keep those quarters as similar as we can. Having quarters between the $900 million to a little bit shy of $1 billion every quarter provides not only better working capital management for us, it helps us in our manufacturing efficiency. So it's really important for us to keep that revenue linear.

我們正在努力做的就是盡可能保持這些季度的相似性。每季的資金規模在 9 億美元到略低於 10 億美元之間，不僅為我們提供了更好的營運資金管理，還有助於我們提高製造效率。因此，保持收入線性對我們來說非常重要。

With that said, we keep seeing strong momentum in order entry and banking. So we believe that, if we maintain our backlog around that $1 billion, maybe a little bit lower, maybe a little bit higher, we're still covered for two quarters of product revenue.

話雖如此，我們仍然看到訂單輸入和銀行業務的強勁勢頭。因此，我們相信，如果我們將積壓訂單維持在 10 億美元左右，也許低一點，也許高一點，我們仍然可以保證兩個季度的產品收入。

And with the efficiencies and manufacturing and improved supply chain that we've worked in moving manufacturing closer to end users with our North America facility or Brazil facility or European and Asian facilities, I think that that provides a very stable way of running the business. So I would say that, this year, big effort in keeping revenue linear.

透過我們的北美工廠、巴西工廠或歐洲和亞洲工廠的效率、製造和改進的供應鏈，我們致力於使製造更接近最終用戶，我認為這提供了一種非常穩定的業務運作方式。所以我想說，今年，我們在維持收入線性方面付出了巨大的努力。

So we're going to still have a second half of the year, but we're going to try to maintain that linearity, keeping our quarters in that range of $900 million to a little bit shy of $1 billion to close out the year. Next year, our big effort will be how do we now linearize our cash flow or start to linearize our cash flow also a little bit better.

因此，我們仍然有下半年，但我們將努力保持這種線性，將我們的季度收入保持在 9 億美元到略低於 10 億美元的範圍內，以結束今年。明年，我們的主要工作將是如何使我們的現金流線性化，或開始更好地線性化我們的現金流。

So that's kind of where we are, but I'm very confident that the model that we're building is a sustainable one. And to wrap it up, one of the things I'm proud is of our team. We've now adopted this idea of continuous improvement. So wherever we are, I would tell you the 20,000 people that make up Diebold Nixdorf know that we can only get better. And once we get better, we know we also know that we can only continue to get better. So that new mindset is what excites me about the future for the company.

這就是我們現在的處境，但我非常有信心我們正在建立的模型是一個可持續的模型。總而言之，我感到自豪的事情之一就是我們的團隊。我們現在已經採用了這種持續改進的想法。因此，無論我們身在何處，我都會告訴您，迪堡·尼克斯多夫 (Diebold Nixdorf) 的 20,000 名員工知道，我們只會變得更好。一旦我們變得更好，我們知道我們也知道我們只能繼續變得更好。因此，這種新的思維方式讓我對公司的未來感到興奮。

(Operator Instructions) Matt Summerville, D.A. Davidson.

（操作員說明）Matt Summerville，D.A.戴維森。

Yeah, thanks. Just a couple quick follow-ups. Octavio, I guess I was wondering if you could maybe provide a little additional color on the North American kind of recycling adoption. And maybe delineate between the big banks and the small banks using a baseball analogy in terms of what inning we're in at this point in terms of proliferation.

是的，謝謝。只需幾個快速跟進。奧克塔維奧，我想我想知道你是否可以為北美的回收提供一些額外的資訊。也許可以用棒球類比來劃分大銀行和小銀行，就我們目前在擴散方面所處的局而言。

So I would say, Matt, on our installed base in North America, we still have more than 55% of our installed base to refresh. That's just if we were able to only capture what we currently have today and refresh it with new technology. Obviously, we're winning in the markets. We believe that we can actually grow that.

所以我想說，馬特，在我們北美的安裝基礎上，我們仍然有超過 55% 的安裝基礎需要更新。這只是如果我們能夠捕捉我們目前擁有的東西並用新技術更新它。顯然，我們正在市場上獲勝。我們相信我們實際上可以發展這一點。

But to be more specific around your question around big banks and, I would say, regional banks, community banks, credit unions, we see all big banks now embracing recycling. Again, remember, it requires some operating changes, some software changes. But everybody's buying the recycling machines today, preparing themselves for that.

但為了更具體地回答你關於大銀行的問題，我想說的是，區域銀行、社區銀行、信用合作社，我們看到所有大銀行現在都在擁抱回收。再次記住，它需要一些操作更改、一些軟體更改。但今天每個人都在購買回收機，為此做好準備。

So I would say the big banks are in a 80/20, probably 70/30 if I'm a little conservative. But in the smaller banks, we're probably in the opposite 30% done or investing in the technology, 70% thinking about investing in the technology. The important part is that all the switching networks in the North America market that drive a lot of the adoption are now adapting their switches to be recycling capable.

所以我想說大銀行的比例是 80/20，如果我保守一點的話，可能是 70/30。但在較小的銀行中，我們可能有相反的 30% 的人完成或投資了技術，70% 的人正在考慮投資技術。重要的是，北美市場上推動大量採用的所有交換網路現在都在對其交換機進行改造，使其具備回收能力。

So that will provide, I would say, in the coming years, additional impetus to the adoption of recycling.

因此，我想說，這將在未來幾年為回收提供額外的動力。

That's helpful. And then a comment you made to my other question on Brazil, you mentioned some larger government tenders potentially coming up there in the second half of the year that I think would portend a pretty good 2025 in that important market for you guys. So I think it's been a number of years since we've seen the big government run banks make material, sort of do material refreshes. So can you maybe just put a little bit more color around what that could mean for you guys?

這很有幫助。然後，您對我關於巴西的另一個問題發表評論時提到，今年下半年可能會進行一些規模更大的政府招標，我認為這對你們來說預示著這個重要市場將在2025 年迎來相當好的前景。因此，我認為自從我們看到政府經營的大型銀行製造材料，或進行材料更新以來，已經有很多年了。那麼你能不能稍微解釋一下這對你們來說意味著什麼？

So as you know, it's always a government tender. So there's a little bit of risk always involved in that. But we see these large government banks adopting recycling. So some of them were pioneers in recycling. Some of our first RM4 recycling engines were sold in Brazil several years ago.

如您所知，這始終是政府招標。因此，這總是存在一些風險。但我們看到這些大型政府銀行正在採用回收。因此，他們中的一些人是回收的先驅。我們的部分首批 RM4 回收引擎幾年前在巴西出售。

So clearly, that has provided good performance for large government banks. But now they're looking at expanding that to all their fleet. So we're optimistic that once these large banks continue renewing their fleet, we will have a great opportunity.

顯然，這為大型政府銀行提供了良好的表現。但現在他們正在考慮將其擴展到所有機隊。因此，我們樂觀地認為，一旦這些大型銀行繼續更新其機隊，我們將有一個很好的機會。

And as you know, there's few players in that market. So we feel confident that with the technology and the service that we provide in country, we should be able to win a significant portion of new business in those banks.

如您所知，該市場的參與者很少。因此，我們相信，憑藉我們在國內提供的技術和服務，我們應該能夠贏得這些銀行的大部分新業務。

Thank you. At this stage, we have no further questions registered via the telephone lines. So I hand back over to Chris Sikora for any closing or final remarks.

謝謝。在此階段，我們沒有透過電話線提出任何進一步的問題。因此，我將把所有結束語或最後的發言交回給克里斯·西科拉（Chris Sikora）。

Thank you again for participating in today's call. If you have any questions, please feel free to reach out to me and Investor Relations. Have a great rest of the day.

再次感謝您參加今天的電話會議。如果您有任何疑問，請隨時與我和投資者關係部聯繫。祝你這一天好好休息。

Ladies and gentlemen, this concludes today's call. Thank you for joining. You may disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您的加入。您可以斷開線路。