4/25/07

Wincor Nixdorf with significant growth in first half

Wincor Nixdorf AG recorded a significant level of growth in the first six months of fiscal 2006/2007. Consolidated net sales rose by 15% to €1,085 million (€943 million), while EBITA surged ahead by 20% to €90 million (€75 million). First-half profit grew by 36% to €49 million (previous year: €36 million). President and CEO Eckard Heidloff sees Wincor Nixdorf's solid performance as confirmation of the well-judged strategic direction taken by the Group. "The results show that we are well on track with the growth strategy chosen for the Group and that we will continue to generate growth. We are clearly benefiting from our prowess as an innovator and are continuing to perform well within the international arena." This is reason enough to revise upward the Group's forecast for the fiscal year as a whole. "Buoyed by favorable first-half results, we look set to exceed our original target for the full fiscal year. We have set our new target at growth of 9% in net sales and 15% in EBITA," said an optimistic Heidloff. The original forecast for the fiscal year had been for a 6% increase in net sales and 8% growth in EBITA.

In the second quarter, consolidated net sales rose to €537 million, representing growth of 18% on the previous year's figure of €455 million. Within this context, Wincor Nixdorf benefited from several large-scale banking rollouts, thus emulating its first-quarter performance.

Headcount increased to 8,116 as of March 31, 2007 (7,787 as of September 30, 2006).

Significant growth in Europe, solid gains in Asia and Americas

Europe (excluding Germany) recorded a 17% increase in net sales, taking the total to €581 million in the first half (previous year: €496 million). Contributing 54% (previous year: 53%), this region again accounted for the largest proportion of total net sales. In the second quarter of fiscal 2006/2007 Europe (excluding Germany) achieved 26% growth in net sales, taking the figure to €290 million (previous year: €231 million).

In Germany, net sales grew by 13% year on year to €286 million (previous year: €253 million). Thus, business in Germany contributed 26% (previous year: 27%) to total net sales. In the second quarter of fiscal 2006/2007 net sales generated in Germany increased by 8% to €141 million (previous year: €130 million).

The Americas recorded a significant gain in net sales in the first half of fiscal 2006/2007. Here, net sales rose by 13% to €80 million (previous year: €71 million) and by 25% in U.S. dollar terms. As in the previous fiscal year, the Americas thus accounted for 7% of total net sales within the Group. In the second quarter of the fiscal year net sales generated in the Americas rose by 23% to €38 million (previous year: €31 million).

Asia/Pacific/Africa also registered significant growth in net sales. This region as a whole produced a 12% increase in net sales in the first six months, taking the total to €138 million (previous year: €123 million); expressed in U.S. dollars, this corresponds to growth of 23%. The share contributed by Asia/Pacific/Africa to total net sales within the Group remained unchanged year on year at 13%. In the second quarter of fiscal 2006/2007 net sales generated in Asia/Pacific/Africa grew by 8% to €68 million (previous year: €63 million).

Strong banking business

The Banking segment achieved a 23% increase in net sales in the first six months of fiscal 2006/2007, taking its total to €698 million (previous year: €568 million). In the second quarter net sales growth within the Banking segment amounted to 26%.

The Retail segment recorded a 3% gain in net sales in the first six months of fiscal 2006/2007, posting a total of €387 million for this period (previous year: €375 million). In the second quarter net sales growth within the Banking segment amounted to 5%.

Broken down according to business stream, Product business produced growth of 16% to €655 million in the first six months (previous year: €565 million). Net sales from Solutions/Services increased by 14% to €430 million (previous year: €378 million).

Net sales from Product business in relation to total net sales remained unchanged year on year at 60%. Correspondingly, the share of net sales attributable to Solutions/Services stayed at 40%.

In the second quarter of fiscal 2006/2007 net sales from Product business grew by 18% to €317 million (previous year: €268 million). Net sales from Solutions/Services also rose by 18% to €220 million (previous year: €187 million).