The Group interim report of Wincor Nixdorf AG has been compiled in accordance with the requirements of the International Accounting Standards Board (IASB) and the bulletins of the International Financial Reporting Interpretations Committee (IFRIC). With the beginning of the fiscal year 2005/2006 Wincor Nixdorf AG has to apply the standards which have been revised in the course of the “Improvements Project“. The first-time application of the revised International Financial Reporting Standards has mainly the following effects on the Group financial statements of Wincor Nixdorf AG to June 30, 2006:

IAS 1 “Presentation of Financial Statements”. The IAS 1 revision means the balance sheet has to be presented by current/non-current distinction. Assets and liabilities are divided up into current and non-current items, and equity now also includes minority interest.

Current assets are those

• which are turned over within the entity’s normal operating cycle,
• which are primarily held for the purpose of being traded,
• which are expected to be realized within twelve months after the balance sheet date or
• which are cash or cash equivalents.

Current liabilities are those

• which are expected to be settled within the entity’s normal operating cycle,
• which are primarily held for the purpose of being traded,
• which are due to be settled within twelve months after the balance sheet date or
• in respect of which the entity does not have an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.

This differentiation results in a change to the structure of the balance sheet of Wincor Nixdorf AG in fiscal 2005/2006. The Group balance sheet as of September 30, 2005 has been adjusted accordingly, with trade receivables, other assets, other accruals, financial liabilities and other liabilities split up into constituent current and non-current components. In addition, spare parts used by the service business have so far been reported under inventories. These are split up into reworkable service parts and other spare parts. If reworkable parts of Wincor Nixdorf products break down they are made serviceable again by Wincor Nixdorf or other service providers under a logistics and repairs process and returned to the spare parts inventory. As per typical industry practice, reworkable service parts are now being reported for the first time as non-current assets. Furthermore, prepaid expenses and deferred income are reported, respectively, under other assets and other liabilities.

Accruals for pensions and similar obligations. In June 2006 Wincor Nixdorf created plan assets according to IAS 19 as part of a Contractual Trust Arrangement by transferring assets to a registered association (Wincor Nixdorf Pension Trust e. V.). The association, as an independent pension fund, is entitled to the plan assets which fund pension obligations to employees in Germany. The plan assets, which were transferred to the association at their market values, are divided into an equity interest in a real estate company (€ 14,499k), trade receivables (€ 30,069k) as well as cash and cash equivalents (€ 56,000k). The plan assets have been deducted from the corresponding pension obligations on the Group balance sheet as of June 30, 2006. In addition, Wincor Nixdorf converted parts of the employer’s pension scheme arrangements in the third quarter of 2006 from pension payments to a one-time payoff or payment in several installments. This alteration has resulted in a change to the pension obligations valuation as of June 30, 2006.

Share-based payment program. The vesting period for the 2004 share-based payment program expired on June 2, 2006, and of the 212,500 share options issued 198,500 have been exercised. The weighted average share price at the date of exercise was € 97.88. The share options were redeemed by the allocation of shares (7,250 share options) purchased on the market and by cash settlement (191,250 share options). This did not produce any change to the total number of shares in issue. The expenses incurred have been charged directly against equity.

Besides the same principles of consolidation, accounting and valuation and calculation methods apply to this interim report, which was compiled in accordance with the requirements of IAS 34 “Interim Financial Reporting”, as were used in the Group financial statements as of September 30, 2005. The applied methods of accounting and valuation are described in detail in the Notes to the Group financial statements as of September 30, 2005.