Diebold Nixdorf has the #1 market share across all ATMs at 31% globally, which equates to around 1 million installed units. The company is also the leading provider of self-ordering kiosks globally with a 19% market share and the leading provider of installed retail checkout systems in Europe. As such, Diebold is a leader in Connected Commerce, which provides customers with an integrated experience that allows transactions to occur anytime, anywhere on any device. The company looks to enhance the banking and retail customer experience while making cost structures and business process more efficient through the integration of its products, software and services. By category, Diebold’s revenue is made up of 55% services, 35% products and 10% software. By segment, banking is 70% of total revenue, split equally between the Americas and Eurasia regions, and retail accounts for the remaining 30%. About 60% of Diebold’s revenue recurs on an annual basis.
Diebold Nixdorf’s sustainability program has three main pillars: sustainable supply chain operations; environment, health and safety; and global citizenship. The company aligns its program with The 10 Principles of the United Nations Global Compact and the UN Sustainable Development Goals.
The commitment to sustainability in Diebold’s sourcing and design is evident in the company’s launch of its DN Series of innovative ATMs. The product is made from about 40% recycled materials and is 25% lighter than traditional ATMs. The design reduces CO2 emissions in both the manufacturing and transportation of terminals. DN Series ATMs also use state-of-the-art LEED technology and highly efficient electrical systems that allow for up to 50% power savings. Diebold’s DN Series ATMs also include software that allows for enhanced monitoring that reduces the number of service calls resulting in lower vehicle emissions. Within the DN Series, Diebold also recently launched a new all-in-one Point-of-Sale and touch display terminal that generates significant power savings versus standard Point-of-Sale systems. Over 90% of the materials used to design this POS system can be recycled.
As a strategic partner to nearly all the world’s top 100 financial institutions, Diebold is looking to use its influence to drive greater sustainability within the financial services industry. The company has written a white paper on “Sustainable Banking: A Guide to Taking Action”, highlighting many of the actions financial institutions can take to move towards a more sustainable future. The company has made financial inclusion a key priority and is one of the founding leaders of the Consumer Choice in Payment Coalition, a group of business and consumer groups that advocates for all consumers to have the right to use cash to pay for goods and services. Diebold also recently announced a partnership with Operation Hope, which has the mission to expand economic opportunity to underserved populations in the U.S. and globally through financial education and empowerment. The Diebold Nixdorf Foundation has supported the financial education and assistance outreach to more than 400,000 underbanked and unbanked U.S. residents and helped them start relationships with a financial institution. Newsweek highlighted Diebold Nixdorf as one of America’s Most Responsible Companies.
Diebold’s greater focus on sustainability has also coincided with an improvement in the company’s operating performance. Over the last two years the company has reduced leverage, improved EBITDA margins, and generated solid free cash flow. The company’s sustainable product offerings are gaining market share and driving Diebold’s leadership in Connected Commerce.
*****
By Marcus Moore
Important Disclosure Information
Zeo Capital Advisors is a fundamental investment manager with a short-duration credit mutual fund, a sustainable high yield mutual fund and separately managed accounts. Marcus Moore authored this piece and is the Assistant Portfolio Manager and Senior Credit Analyst at Zeo Capital Advisors. For more information contact Zeo directly at 415-875-5604 or visit www.zeo.com.
Past performance is not indicative of future performance. This Company was not selected for performance-based reasons, and was instead selected to emphasize the types of issuers that Zeo Capital Advisors, LLC (“Zeo”) seeks to invest in based on its sustainability mandate.
The methodology for initially preparing a Sustainability Profile for an issuer requires the issue to be among Zeo’s largest holdings as of quarter-end. As of June 30, 2021, Zeo’s clients owned securities issued by this Company. Sustainability Profiles are shared to provide information about the sustainability selection process and may be used even after an issue is no longer one of the largest holdings in a strategy.
Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Zeo), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from Zeo.
A copy of the Zeo’s current Form ADV Part 2A and Form CRS are available upon request or at www.zeo.com/disclosures.
The material provided herein has been provided by Zeo Capital Advisors, LLC and is for informational purposes only. Zeo Capital Advisors, LLC serves as investment adviser to one or more mutual funds distributed through Northern Lights Distributors, LLC member FINRA/SIPC. Northern Lights Distributors, LLC and Zeo Capital Advisors, LLC are not affiliated entities.
1334-NLD-07/08/2021