Impact of Legal and Economic Factors on the Business. In fiscal 2005/2006, Wincor Nixdorf’s business activities were affected by the requirements of European Directives 2002/95/EC dated January 27, 2003 (RoHS) and 2002/96/EC dated January 27, 2003 (WEEE) as well as the corresponding national legislation (for Germany the ElektroG Act of March 16, 2005). During the course of fiscal 2005/2006, Wincor Nixdorf introduced a comprehensive set of measures to implement the provisions relating to prohibited and waste materials and other requirements of the above directives and laws.

The second phase of the Leergut-Rücknahmeverordnung, a regulation governing the return of empty beverage containers, acquired legal force in Germany on May 1, 2006, with the prohibition of arrangements whereby the retailer will only take back its own goods. This means that retailers who sell returnable deposit cans, PET or one-way bottles will be obliged to take back not only their own used items but also those of other providers. In the fiscal year under review, this led to a corresponding increase in demand for reverse vending machines in the German market. Wincor Nixdorf was able to prepare itself for this eventuality by expanding its portfolio.

The economic factors that are currently affecting and may in future affect our activities are described in detail in the Risk Report.