Michael Schönbeck | 11/20/2017

DIEBOLD NIXDORF DRIVING CONNECTED COMMERCE Modern and digital product solutions begin within the own company processes.

1. : Service, software and systems

2. Diebold Nixdorf Manufacturing: Production of custom specific quality products

3. Insight into the networked, automated and dynamic production Building on a long tradition of delivering innovation to our customers

1989 2015 First ATM with cellular Acquires multivendor 1930s communications Diebold becomes software innovator Phoenix Interactive Design publicly traded 1940s company , famed 2008 1859 Introduces mobile Karl Diebold crime-fighter, became chairman of 1966 banking 2014 founds safe & lock Introduces world’s Diebold Diebold Diebold’s board Diebold presents world’s company in greenest ATM first concept of ATM

2016 Diebold Nixdorf Combination

2003 1973 Introduction of 1995 2014 First electronic POS self-checkout Introduction of Introduction of network system solution cash recycling omni-channel introduced in 1952 technology 2001 retail software Launch of PC/E 2015 establishes The 1987 multichannel software Launch of AEVI Laboratory for architecture and first 2 | DIEBOLD NIXDORF Introduction of Confidential - Internal use only! cashless payment Pulse Technology WEB multivendor

Wincor Nixdorf Nixdorf Wincor PC in ATMs solutions software solution

2 | DIEBOLD NIXDORF We deliver innovative solutions to banks and retailers

Services Software Systems . Maintenance Services . Self-Service . Banking . Deployment and Implementation Services . Omnichannel Banking and Retail Platform – Intelligent Deposit – Cash Recyclers and Dispensers . . Marketing – Teller Automation – Cash Cycle Management . Operations/Asset Management . Retail – Store and Branch Modernization . Security and Monitoring – Electronic Point-of-Sale . Global Service Delivery with Local Resources . Systems Integration – Automated Checkout – Kiosks . Postal and Transport

3 | DIEBOLD NIXDORF Confidential - Internal use only! Reliable Innovative Secure Cost-effective

3 | DIEBOLD NIXDORF Leveraging our substantial expertise to benefit customers

Experience

Innovation Presence in $194 Million for R&D $5.2 Customer Resources Billion 130+ 1 countries in revenue 1out of 3 ~25,000 Supporting ATMs Team members Resolving 25+ ~ 3,000+ languages > 14,500 10 Service members Patents 2+ million Million Service calls/year Installed ePOS ~1,700 and ATMs Software professionals 4 | DIEBOLD NIXDORF Confidential - Internal use only!

Note 1) Based on trailing 12 months revenue for Diebold and through December 31, 2015. Diebold revenue excludes the contribution from its Electronic Security business, which was divested on February 1, 2016. Wincor Nixdorf revenue has been converted from Euros to US$ using a European Central Bank (ECB) reference exchange rate of 1.09 Euros/US$ on March 1, 2016.

4 | DIEBOLD NIXDORF Diebold Nixdorf: Banking, Retail or Post – our comprehensive and reliable hardware portfolio meets every deployment scenario and customer wish

Banking Hardware ATM – Automated Teller Machines ATS – Automated Teller Safes CRS – Cash Recycling Systems Passbook Printers & Peripherals Security Components Banking Components Banking Terminals

Transaction & Kiosk Terminals Interactive Kiosk Solutions (POI) Postal Terminals

Retail Hardware POS Systems – Systems Retail Peripherals Retail Components Reverse Vending Solutions Lottery Terminals Service Stations

Customizing Customer individually configured products

5 | DIEBOLD NIXDORF The production strategy of DN based on regional lead plants and smaller local satellites

Nearby the regional markets – efficient, flexible, quick

Regional setup  Lead plants in North-America and Europe process main volume for America and EMEA  Products for Asia come from asian joint ventures  Brasil and are served by local plants

Europe

JV AP N. America

India

S. America

DN plants

JV plants

6 | DIEBOLD NIXDORF Modern and digital product solutions begin within the own company processes.

1. Diebold Nixdorf: Service, software and systems

2. Diebold Nixdorf Manufacturing: Production of custom specific quality products

3. Insight into the networked, automated and dynamic production We count on our talents for preparing us already today on the challenge of the day after tomorrow

Director: Michael Schönbeck 1215 employees Plants revenue Quality Production Program Management Engineering Planning Assembly Assembly Surface Metal Parts 220 Systems Modules Treatment Production Operations 3rd Party Material Warehousing / 625 Support Business Sourcing Logistics 370 Performance FY 16/17 DN worker EUR 516m

Temporary worker Operating hours 1,580,879 h FY 16/17 Contract worker Earned hours 68.9m EUR

High flexible working hours model Number of processed systems p.a. Working time for every employee: 35 h/week Cash systems 27,000 + 3 h supplemental agreement Non cash systems 5,000 Flexible time account for every employee: ± 160 h p.a. SCO systems 3,000 Sheet metal production and surface treatment: 17 shifts/week + ghost shifts in automated working areas POS systems 115,000 CCDM II kits 3,000 Assembly lines: 5 to 10 shifts/week depends on customer order POI/ Kiosk 3,000

10 | DIEBOLD NIXDORF Three guiding principles of the plant Paderborn with the idea of extreme efficiency and quick reaction

Customer configured products Profitable product costs High quality production

. Build-To-Order, flowing assembly with extreme product mix . High automated and flexible sheet metal production . Preprocesses are optimally connected to the assembly lines with just-in-sequence process . Self-learning zero-defect quality system . Economical production systems organized with lean produktion, value stream management, 5S, CIP... . Continuous development of our products and processes by our production engineers

11 | DIEBOLD NIXDORF With Industry 4.0 (digitalization of production) we continuously optimize our production now and in the future

Software Hardware Projects Industry 4.0 IT Software: Truth IT Hardware: Speed . Automated order management for JIS-parts . Digitalization for cable harness PLM Systems assembly . Digital info system - production monitoring Cyber . Paperless production incl. paperless picking ERP Systems 4. Industrial . Dynamic final test revolution . Realtime quality data of the Social Behaviour: Cooperation Physical Systems: Automation production . Paperless order selection . Electronic Smart Label . Production Monitor . Visual process support for placing

Physical the media entry indicator labels . …

Source: Following WZL/ Fraunhofer IPT

12 | DIEBOLD NIXDORF 11. Nov 2017

INDUSTRIE 4.0 @ WINCOR NIXDORF MANUFACTURING Three guiding principles of the plant Paderborn with the idea of extreme efficiency and quick reaction

Customer configured products Profitable product costs High quality production

. Build-To-Order, flowing assembly with extreme product mix . High automated and flexible sheet metal production . Preprocesses are optimally connected to the assembly lines with just-in-sequence process . Self-learning zero-defect quality system . Economical production systems organized with lean produktion, value stream management, 5S, CIP... . Continuous development of our products and processes by our production engineers

14 | DIEBOLD NIXDORF WNM – Production Plant in Paderborn All assembly lines follow the principle „Build-to-order“ with optimally interconnected preprocesses

Basic principle: Fishbone Cycle, sequence Flowing Pulling controlled

Heads Covers Final test

Head chassis Modules Doors Top covers

Cable harnesses Side panels

customized process

CEN, UL Gasex CRS Indoor Outdoor CMD Keys CCDM Safes Operator panel Cassette tower

. Preprocesses: Module assembly, Surface treatment, part production are connected . Delivery: in each case JUST-IN-SEQUENCE

15 | DIEBOLD NIXDORF Project scope: Industrie 4.0 @ Wincor (1/3) technical applications: Logistics

1 E-Kanban

2 JIS for pre processes

LP1 3 paperless kitting

automated sequencing of production 4 order end to end trancparency of 5 each production order

on going/realized

planed/started

1 Leuchtturmprojekt idea

16 | DIEBOLD NIXDORF 1 Project scope: Industrie 4.0 @ Wincor (2/3) technical applications: Assembly Lines

4 personalized digital assembly aid‘s

2 digital checklist

LP1 3 paperless assembly

on going/realized 1 digital aid for cable loop planed/started idea 1 Leuchtturmprojekt

17 | DIEBOLD NIXDORF Project scope: Industrie 4.0 @ Wincor (3/3) technical applications: Quality

2 SPC Reporting – statistical process control with KPI‘S

3 individual and production order related feedback of Quality data

4 dynamization of test contents

on going/realized

automated collection of planed/started 1 Quality data idea

1 Leuchtturmprojekt

18 | DIEBOLD NIXDORF WNM| ARBEIT 4.0 | 12/05/2016 Industrie 4.0 @ WNM Impact to production location Paderborn

Technische Anwendungen der Industrie 4.0 bei der WNM

Logistic´s Assembly Quality

Imapct of Industrie 4.0

Learning

Organization Human . PDB is „lead“ plant . Human work still very important . rise of attractively as production location . collaboration of human and machine . Enhancement of competence and qualification profiles

19 | DIEBOLD NIXDORF DieboldNixdorf.com 11. Nov 2017

ASSEMBLY ASSISTANCE THROUGH

INDIVIDUAL FEEDBACK OF QUALITY INFORMATION IN REAL TIME It‘s Owl: Arbeit 4.0 Assembly assistance through individual feedback of quality information in real time Goal and Strategy

Real time analysis General Goals: 1. Increase in production quality through avoidance of (reoccurring) errors in assembly Order specific quality information 2. Reduction of efforts required to Consolidation of all quality prepare quality stand up meetings information

Customer individual production

22 | DIEBOLD NIXDORF It‘s Owl: Arbeit 4.0 Assembly assistance through individual feedback of quality information in real time Initial situation & implementation strategy

Production Process • Customer individual production of highly complex products in a one piece flow assembly according to pull principle • Decentral Q-Gates for quality testing and centralized Q-control for quality monitoring

Assembly workers • Executes manual assembly task with great demand on variance • Individual responsibility to secure quality with support from Q-System

Quality data/ information (QI) • Quality data is generated in the production process and administered via DB-Systems Access& SAP • Processing and mediation of quality data is executed within quality assurance process • Application of quality information occurs within the assembly process to increase production quality

Strategy to meet goals: Improvement of the application of quality information by its direct feedback to the worker via an acceptable assistance system in order to increase the quality of the production process.

23 | DIEBOLD NIXDORF It‘s Owl: Arbeit 4.0 Assembly assistance through individual feedback of quality information in real time Initital situation and implementation approach

Current Process

Assembly/Testing QI Genration QI Assimilation QI Application

Q-Management QI Processing QI Mediation

available with up to 1 - 2 days lag time Content of quality information • Not always relevant to actual assembly task

Target Process

Assembly/Testing QI Generation QI Assimilation & Application

QI Processing QI Mediation Solution components Neu

Q-Management Review & Release

promptly available Content of quality information • Applicable to the concrete task

24 | DIEBOLD NIXDORF It‘s Owl: Arbeit 4.0 Assembly assistance through individual feedback of quality information in real time Securing acceptance in development process

Change/Optimization

Influences / Idea promoter Influences / Idea promoter others (internal+external)

Managemen Involvement early involvement t Accompaniment Vision/Idea

Trust & Acceptance (reduce anxiety)

Knowledge of worker requirements/needs QV Workers Worker Change of task structures Council Understand Understand use context organizational context real requirements Visibility & Trust

Development team 25 | DIEBOLD NIXDORF It‘s Owl: Arbeit 4.0 Assembly assistance through individual feedback of quality information in real time User interaction concept and user interfaces

FA identifizieren Qualitätsprüfung – Hinweisbox aufgeklappt

Sequenz-Nr. 7865880 Status 37 / 49 App Übersicht – Tester Qualitätsinformationen - Detailansicht Typ CINEO C4080 Frontload Qualitätsprüfung

Sequenz-Nr. 7865880 Sequenz-Nr. 7865880 Exot Typ CINEO C4080 Frontload Exot Qualitätsinformationen Typ CINEO C4080 Frontload Qualitätsinformationen Wells Fargo erfordert eine präzise Verkabelung bei allen Sequenzen des SD-Auftrages Lieferstopp NDC/DCC Braille Sequenz-Nr. 7865880 NDC/DCC Braille voraussichtlich erst ab dem 26.03.2017 verfügbar Rückhaltekamm im unteren Schacht gerichtet Typ CINEO C4080 Frontload Qualitätsinformationen Q-INFO 2267700 Platzhalter Fertigungsauftrags-Nummer Qualitätsprüfung Stückliste Qualitätsinformationen Platzhalter Betroffene Komponente Gefundenes Problem Richtige Handhabung Rückhaltekamm im unteren Schacht gerichtet FA Rückhaltekamm Banknotenprüfer: Banknotenprüfer SNR Standard wechseln Q-INFO 2267700 Material-Nr. 1750200435 Banknotenprüfer Mögliche Ursachen Doppelte (rote) Noten werden nicht erkannt • Falsche Einstellung Problem berichten SD-Auftrag Platzhalter Platzhalter Arbeits- Q-INFO 2267712 • Fehlerhaftes Modul platz Platzhalter Voraussichtliche Korrekturzeit Kassette 5: Note 0 und 1 – gap too small, Note 2 – Unexpected Note 8 Min. Konfiguration Q-INFO 2267659 Letztes Auftreten Kritische laut PC- CSE und Externe Sichtkontrolle Tresor Audiopaket Lüftereinheit Platzhalter Platzhalter Platzhalter 22. Feb. 2017 09:43 Uhr Prüfpunkte Fertigungs- Konfiguration Bedienfeld-SE Bedieneinheit auftrag Rückhaltekämme im oberen und unteren Schacht gerichtet

Q-INFO 2267722 Doppelte (rote) Noten werden nicht erkannt

Q-INFO 2267712 Komponenten in falscher Einbaulage verschraubt

Q-INFO 2267755

26 | DIEBOLD NIXDORF It‘s Owl: Arbeit 4.0 Assembly assistance through individual feedback of quality information in real time Functionality of assistance system – Architecture

Order specific quality Individual Quality ERP-Data base Information data Order data

Work place Process data Processing program

Quality Data

Quality-DB

Quality Data

Error notices Raw quality data

Data collection

27 | DIEBOLD NIXDORF It‘s Owl: Arbeit 4.0 Assembly assistance through individual feedback of quality information in real time Results of acceptance tests

Acceptance not acceptable marginal acceptable Area niedrig hoch 67,5 72,5 50 62,5 67,5 70 72,5 Adjective-Rating poor weak ok good excellent exceptional

SUS-Score 0 10 20 30 40 50 60 70 80 90 100 Feedback from Feedback from testing assembly area area

. The valuated System Usability Scores (SUS) lie predominately in the acceptable area, do not, however, achieve excellence. . The software does not demand the execution of additional, superfluous working steps. . The notices/information from the system are in the most cases not yet easily understandable. . The software is easy to learn.

28 | DIEBOLD NIXDORF It‘s Owl: Arbeit 4.0 Assembly assistance through individual feedback of quality information in real time Conclusion organizational Acceptance individual Acceptance • The solution approach addresses current challenges in the • Early representation of the employee interest in the concept company. phase. • The prototype can effectivly and efficiently promote error • Close cooperation between project research and management avoidance in assembly. supports systematic approach to employee participation.

The employees accept new solutions more when they participate in their generation. Employee satisfaction, motivation and quality of work increases .

Technical acceptance • User central approach promotes integration of all stakeholders. • Iterations in the development process promote the quality of the solution.

29 | DIEBOLD NIXDORF DieboldNixdorf.com