Wincor Nixdorf’s primary goal is to achieve sustained growth in the value of the enterprise. This strategy requires us to think ahead and plan for the long term. The criteria we use to measure this sustained growth in value are gains in profitability, innovative products and solutions, returns that meet our market expectations and the creation of new and secure jobs.

Wincor Nixdorf aims to achieve continued growth in net sales and profits, above the industry average. Across the board, the Group’s targets are expressed in such a way that all our actions and processes are geared toward achieving profitable growth within the Group.

Our remuneration system is characterized by a high proportion of variable salary components. It is applied to all areas from production through to management.

Both operating and non-operating business within the Wincor Nixdorf Group is controlled by means of a series of financial and non-financial indicators that feed into a central indicator control system at Group level. These indicators are carefully matched and interconnected. We measure the success of each region, of our sales and associated companies, our core segments Banking and Retail, our hardware and Solutions/Services, our production and development divisions and our central administration departments.

The indicators we use to determine the performance of regions, sales companies and the core segments Banking and Retail are primarily based on growth in net sales and profit, operating margin and cash flow. Operating performance is also measured using profit drivers such as growth in product sales and growth in the solutions business, comprising software, consultancy and services. Other indicators include gross profits and margins, selling, general and administration expenses and working capital.

We control and evaluate our global production and development network on the basis of key performance indicators that are intended to achieve the most efficient use of resources. We also evaluate quality, supplier reliability and stockturn.

In the case of our central administration departments, we ensure that, as far as possible, annual increases in input costs are offset by productivity gains and economies of scale.

Our non-operating business is controlled by value-based indicators with a particular focus on the financial result (finance costs minus finance income) and the Group’s effective tax rate.

All of these operating and non-operating elements flow into the calculation of the earnings per share indicator. This indicator reflects the overall performance of the Group and compares the profit attributable to equity holders of Wincor Nixdorf AG with the average number of Wincor Nixdorf shares outstanding.

The starting point for all management and control processes is strategic planning. First of all, a heavily condensed multi-year business plan is prepared at Group level, focusing on potential growth and profit drivers. This plan is then used to establish medium-term objectives for the core segments Banking and Retail. At the same time, we determine which sectors merit ongoing investment.

Subsequently, the objectives of the multi-year plan are applied to our sales and associated companies, business streams products and solutions, production and development divisions, and to those operations involving direct contact with and support for the customer. It also serves as the basis for establishing budget targets as part of our operational planning. These are then firmed up by means of an iterative process.

During the planning process, wherever differences emerge between the Group’s objectives and the views of the planning teams involved, we aim to reconcile them through our “Road to the Top” growth program and the “ProImprove” program aimed at boosting profitability.

As part of operational planning, we compile a portfolio of opportunities and threats that forms the basis of our operational risk and opportunity management as well as our risk-based evaluations conducted by the internal auditing unit.

Monthly rolling forecasts are produced to gauge progress toward our targets and to identify any departures from the agreed plan. These forecasts allow us to take appropriate measures at an early stage wherever required. Our planning, monitoring and reporting processes are clearly mapped out using integrated information systems, which assure the continuous management and control of our business units. The information systems are also used to produce relevant analyses across the different organizational units and information systems. These results flow into the decision-making process and can provide valuable support if action is needed to counteract potentially harmful developments.