Annual Report Transforming the Business Model to Generate Strong Free Cash Flow aanndd RReettuurrnn oonn IInnvveesstteedd CCapital1 The company is seeking to leverage its operating rigor and strong financial performance during 2020 to increase profitability, free cash flow generation and return on invested capital (ROIC) in 2021. $480 – $140 – $500 $170 ~18% 15% $453 $93 9% $401 $57 2019 2020 2021E 2019 2020 2021E 2019 2020 2021E Adjusted EBITDA1,2 Free Cash Flow 1,2 ROIC 1,2 Leveraging Competitive Differentiation for Growth Expecting 3% – 5% Revenue Growth in 2021 due to a strong product backlog and growth areas which include: $4,409 $4,000 – $4,100 $3,902 DN SeriesTM DN SeriesTM EASY DN AllConnectSM Data ATMs Self-Checkout Engine IoT-Enabled Solutions Service Model 2019 2020 2021E Revenue1 Managed Services Cloud-Native for Retailers and VynamicTM Payments Financial Institutions & Retail Software 1 All $ amounts are shown in millions. Company Outlook for 2021 provided on February 10, 2021. 2 Adjusted EBITDA, Free Cash Flow and ROIC are non-GAAP metrics. Please refer to “Notes for non-GAAP Measures,” following the “Exhibits” section of this report, for more information. Dear Shareholders Against the backdrop of a global pandemic, Diebold Nixdorf demonstrated the resiliency of its business model and a strong operating rigor in 2020. I am gratified by the many ways in which our employees adapted and responded to a dynamic and highly uncertain macro-environment. We cared for our employees, delivered for our customers, contributed to the well-being of our communities and generated strong financial results. Looking forward, we intend to build on this solid foundation in order to bring our DN Now transformation to a successful conclusion and evolve the business to deliver a balance of top-line growth, continuous operating improvements and significantly stronger free cash flow. Caring for our employees From the earliest stages of the crisis, we prioritized the health and Gerrard Schmid, President and Chief Executive Officer well-being of our employees. We equipped our service technicians with the appropriate protective gear and trained them on relevant hygiene and social distancing rules. For our manufacturing facilities, we safely distanced our workers, intensified our cleaning In our Retail business, customers continue to invest in greater rituals and instituted regular temperature checks. We maintained self-service capabilities. Diebold Nixdorf is growing faster frequent contact with key suppliers and increased safety stocks than the market with self-checkout shipment growth of in order to deliver for our customers. And for more than 10,000 approximately 90% in 2020. And we are further differentiating employees in support functions, we provided tools, resources and our offering in 2021 with the more modular, open architecture guidance to safely and productively work from home. I am pleased DN Series™ EASY family of self-checkout products. by the responsiveness of our employees as they kept the company operating with no significant disruptions during the pandemic. For our services business, we are leveraging the IoT and machine-learning capabilities of our DN AllConnectSM Data We’re also looking out for the financial health of employees Engine to increase availability while improving our own efficiency. during this challenging period by establishing an employee And we continue to invest in our Managed Services offering, crisis reserve fund, which is available for employees who need so that we may better support our customer’s demands for support, especially in markets with limited government programs. advanced functionality and increased operating efficiencies. Additionally, our company has increased the frequency and depth of its internal communications. We are also investing in cloud-based software offerings for our customers, including our recent release of the Vynamic As a result of our collective actions, we are seeing strong Payments platform. This is a new, modern, cloud-native employee engagement and resourcefulness. infrastructure designed to support the proliferation of payment types and rapid increases in payment volumes. Our new offering Delivering for our customers addresses the major pain points of legacy platforms, which Most importantly, we deepened our customer relationships limit the ability of financial institutions to deliver a consistent throughout the crisis. We leveraged our breadth and scale to and optimized consumer experience across multiple channels. fulfill our mission as an essential service provider to financial Vynamic Payments debit processing has been implemented at a institutions and retailers – as designated by the U.S. government top 10 global financial institution, and we are making investments and many other entities around the world. We consistently to broaden our market reach and deliver a robust platform delivered strong service levels to banks, grocery stores, that quickly scales to billions of transactions. For fuel and pharmacies and fuel and convenience customers. convenience customers, we launched Vynamic FCx, a dynamic, In our Banking business, the pandemic has reinforced the cloud-based platform that will enable retailers to offer greater strategic relevancy of self-service channels, and we are seeing personalization, increase brand loyalty and build incremental ongoing investments in cash recycling, automated deposits and sales beyond traditional transactions at the fuel pump. cardless transactions. Our momentum with DN Series™ ATMs and fourth-generation cash recycler technology is promising. We have seen customer enthusiasm for the advanced feature set, increased connectivity, greater modularity, support for our advanced Vynamic™ software capabilities and improved security features in a small footprint. 2020 Annual Report | 1 In 2021, we will continue to roll out cloud-based applications for In the back half of 2020, we experienced strong momentum in our employees, improve our effectiveness and enhance our ability product orders, backlog and total revenue. Full-year growth in to respond to customers through our partnership with Accenture. product orders was fuelled by a 22% increase during the second half, with strong contributions from both banking and retail Contributing to our communities customers. Our product backlog increased 23% versus the prior In addition, we are affirming our responsibility to become a year. Total revenue increased sequentially by more than 10% in leader in Environmental, Social and Governance (ESG) matters. both the third and fourth quarters of 2020. Sustainable operations are vital to our customers and suppliers. Our focus is on reducing our carbon footprint, promoting Diebold Nixdorf’s investment thesis recycling and using environmentally sustainable materials. Our DN Now achievements are transforming the business model to generate strong free cash flow. We have evolved our initiatives As a global company with a presence in more than 100 and increased our savings target to $500 million through 2021. countries, we also take our role as a global citizen seriously. With two years of solid execution in the books and another $160 With respect to diversity and inclusion, we have formed a CARE million of savings to be realized this year, our path to higher council to promote inclusive values where we are Considerate, profitability is well underway. We expect to generate a meaningful Aware, Responsible and Empathetic toward one another. We increase in free cash flow as our restructuring spend tapers off. are holding one another accountable to create a great working Our outlook for free cash flow in 2021 is a range of $140 million environment for our diverse and global workforce. Our impact to $170 million, and we are targeting cumulative free cash flow on local communities is also important to us. As part of our of more than $600 million through 2023. Global Citizenship actions, the Diebold Nixdorf Foundation has committed $500,000 to expand financial literacy in underserved Another key element of our investment thesis is the ability to populations through an organization called “Operation Hope.” leverage our digitally enhanced solutions to drive sustainable top- We invite you to learn more about our overall efforts by reviewing line growth and a positive mix shift. Near term, our core banking our recently released corporate sustainability report, which is and retail solutions are expected drive our growth. And we are available on our website. equally excited about the longer-term growth opportunities from cloud-native Vynamic software and Managed Services. Generating strong financial results We are entering 2021 with a strong order book, differentiated During the year, we continued to strengthen our operational rigor by and well-positioned solutions, and a detailed operating plan leveraging DN Now to drive greater efficiency across our business. for bringing our DN Now transformation efforts to a successful We also took appropriate steps to maintain adequate liquidity and conclusion. I am increasingly confident in our ability to execute ensure financial flexibility by extending our debt maturities. on our key performance initiatives; however, we must continue Financial results for 2020 included significant year-on-year to manage a number of pandemic-related uncertainties, increases to our profitability, despite COVID-19 revenue including any lockdown restrictions, access to vaccines, headwinds, due primarily to our DN Now initiatives and the changing