Changes to the Board of Directors. On October 1, 2005 the Supervisory Board expanded the size of the Board of Directors of Wincor Nixdorf AG. In addition to President & Chief Executive Officer Karl-Heinz Stiller and Chief Financial Officer Eckard Heidloff, who has been appointed Deputy CEO, it appointed Jürgen Wilde and Stefan Auerbach to the Board with responsibility, respectively, for the worldwide retail and services businesses. Philip Mantle, who was also appointed to the Board of Directors with responsibility for the banking business, died unexpectedly on December 22, 2005. President & CEO Karl-Heinz Stiller has taken over this role for the time being.

Extra business potential via outsourcing contracts. At the start of the new 2005/2006 fiscal year Wincor Nixdorf launched several large outsourcing projects within the branching banking businesses of some major banks. The projects are a sign of the continuing changing perception of the business on the part of customers. This goes all the way to removal and outsourcing of those activities no longer regarded as being among the banks’ own core competencies. This gives us the opportunity to use our expertise and extensive capability to tap into additional business potential.

Further progress in opening up additional growth potential. Wincor Nixdorf is continuing to complement its core activities in the retail and banking sectors successfully by expanding into other attractive markets. For example, Wincor Nixdorf succeeded in winning orders for reverse vending systems (handling empty bottle and can returns, etc.) from a number of major German retail chains. In view of the upcoming new deposit arrangements for non-reusable packaging in Germany – under which retailers have to take back non-reusable containers and refund deposits – this line of business is increasingly growing in importance.

Wincor World 2006: showing the future of IT for banks and retail companies. Wincor World has established itself worldwide as a platform for sharing knowledge and experience within the banking and retail industries, and the international specialist trade fair will be held in Paderborn, Germany, between January 24 and 26, 2006 under the banner “Sharing new Perspectives”. The high regard in which the event is held can be seen by the fact that Börsen-Zeitung, the German stock market gazette, and the European Retail Institute will be using the exhibition as a forum for their own specialist symposia on retail and banking issues. This year, over 7,000 visitors from more than 50 countries are expected to come to the fair. Wincor Nixdorf will be joined by over 70 partners in presenting propositions consisting of products, software, consulting, maintenance and other services.