Wincor Nixdorf - right on course in first half

Wincor Nixdorf AG grew its net sales revenue to € 840.9 million during the first six months of fiscal 2004/2005, 14.7 % ahead of the first half last year (€ 733.4 million), and 16.7 % ahead before taking account of exchange rate movements. Operating profit before amortization of product know-how (EBITA) increased 29.5 % to € 62.8 million (last year equivalent: € 48.5 million) and lifted the company's return on sales 0.9 percentage points to 7.5 % (last year: 6.6 %) at the half-way mark. A major contribution to this was provided by various cost reduction programs. Net profit for the period rose to € 23.9 million, € 1.4 million ahead of this time last year (€ 22.5 million) which in fact included a tax rebate. 
Thanks to one-off issues - with retail point-of-sale systems in the UK being converted to the new EMV security standard - growth in net sales revenue during the first quarter was exceptionally high. Quarter 2 net sales were € 385.8 million, 12.3 % ahead of the same period last year (€ 343.5 million) and heading for forecast. "The growth in net sales and profit during the first half confirms our estimate for the full year", emphasized Karl-Heinz Stiller, Chief Executive Officer of Wincor Nixdorf AG. "We will be continuing our successful strategy - expanding our core business, growing services, global expansion and moving into new areas of business - and thereby opening up further room for growth."
Contributing to what was overall a good revenue performance during the first half were the company's banking and retail segments, each delivering double-digit growth. The business performed very well, especially in Europe and the Americas, during the first half.
In Europe (excluding Germany), above-average growth was achieved, with first-half net sales revenue up 31.3 %, reinforcing the Group's strong position in Europe in terms of global competition. Net sales in the Americas during the period increased 28.8 % over the same period last year, with revenue in Asia-Pacific & Africa 18.6 % ahead of last time. These significant rates of growth point to an increase in Wincor Nixdorf's share of the market in these territories. 
In Germany, first-half net sales of € 220.5 million lagged 12.6 % behind last year’s figure of € 252.2 million due to weak trading with banks and a restrained performance from retail. Quarter 2 was 16.7 % lower year-on-year. For the full fiscal year a development on previous year's level is being expected.  

In the banking segment, net sales grew 13.5 % to € 484.8 million during the period (last year equivalent: € 427.3 million), with key drivers in the form of strong growth in both the product and the services streams in the Americas and also Asia-Pacific & Africa.
The retail segment reported first-half net sales up 16.3 % to € 356.1 million (last year equivalent: € 306.1 million), the result of good performance in the solutions and services business as well as an exceptionally strong first quarter. 

Service oriented business stronger thanks to growth in solutions and IT-services
Wincor Nixdorf grew its net sales of solutions and services by 20.8 % to € 347.9 million during the first half. As a result, the share of service oriented businesses of total revenue grew to 41.4 % during the first six months (last year equivalent: 39.3 %). Product revenues were up 10.7 % to € 493 million (last year equivalent: € 445.4 million).
In the first half of the year, the number of persons employed within the Group rose by 481 to 6,595. This increase was in order to support the continued growth of the services business and the Group's international expansion in growth markets.
In the first half of the year, the number of persons employed within the Group rose by 481 to 6,595. This increase was in order to support the continued growth of the services business and the Group's international expansion in growth markets.

The company's outlook for the full fiscal year remains unchanged, and it expects to achieve its increased forecast growth of 10 % in net sales and 12 % in EBITA. This view has been strengthened by the first-half performance which, after a strong start to this year’s growth due to exceptional reasons, brought a development towards growth rates being forecasted.

This document contains forward-looking statements that are based on current estimates and assumptions made by the management of Wincor Nixdorf AG to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results - including the financial condition and profitability of Wincor Nixdorf - to differ materially from or be more negative than those expressed or implied by such forward-looking statements. This also applies to the forward-looking estimates and forecasts derived from third-party studies. Consequently, neither the Company nor its management can give any assurance regarding the future accuracy of the opinions set forth in this document or the actual occurrence of the predicted developments.