Product Business.

Business focusing on hardware products for retail banking grew better than expected.

The bulk of our product business was due to cash systems. These mostly comprise ATMs and automated teller safes as well as high-end deposit/recycling systems. We were able to increase our sales volume significantly year on year. The key growth drivers were, above all, new installations in high-growth regions as well as replacement investments within developed markets, prompted by factors including new security requirements for banks, the conversion to uniform standards for credit card systems (EMV – Europay, Master- and VISA-Card) or changes to operating systems. Demand for monofunctional systems was also driven by installations for off-premises suppliers.

The advantages of significantly increased economies of scale for monofunctional and multifunctional ATMs had a positive impact on both costs and prices. The proportion of multifunctional systems again increased year on year. As these systems are positioned in a premium-priced segment, net sales and earnings were given a further boost.

Sales volumes relating to automated teller safes and self-service systems for “assisted self-service” increased further. In particular, demand for high-end devices increased – for example, systems with combined deposit and payout functions, or systems that allow “assisted self-service” by issuing electronic cards for specific transactions.

Wincor Nixdorf has underscored its strong position in the market for intelligent deposit systems with another increase in sales volume. These deposit/recycling systems fundamentally restructure cash and/or check processes at branch level. During the past fiscal year, further large banks in Europe and America invested in our tried and true technology for intelligent deposit modules used in cash and check processing (CCDM).

We were able to successfully position our new compact recycling model ProCash 4000 with its innovative cassette technology in Germany and Asia, recording strong demand in these regions. This new technology simplifies system handling, replenishment and emptying of the recycling system.

As for non-cash products, once again bank terminals designed for the purpose of migrating routine banking operations to self-service applications dominated our business, as evidenced by a substantial increase in sales volumes. We were also able to expand our solution concept for the manufacturing industry using modified bank terminals and corresponding software (for example the “employee self-service solution” for employees without direct Internet access).

Business with voucher and document printers remained at a high level. As a result of its speed and dependability, the HighPrint document printer enjoys global recognition from our customers.

Solutions/Services.

Our Solutions/Services business once again recorded significant growth.

Software solutions and services increased substantially. Net-centric software applications such as the ProClassic/Enterprise software architecture as a corporate solution and the multivendor platform software ProClassic accounted for a particularly high proportion of business growth.

There was also strong demand for software to increase security and for the ongoing control of self-service systems. Both of these functions are offered by our ProView monitoring software, which identifies manipulations and monitors perfect functioning of the system during operation.

An anti-skimming solution comprising software and special sensors that monitors the entire card-input area for devices that were added on at a later date is also enjoying strong demand.

Many banks are redesigning their branches, which also allowed us to successfully participate in the co-development and introduction of intelligent, multifunctional business-to-consumer concepts. Within this area, our Branch Optimizer analysis software proved particularly effective. This software simulates and analyzes the possibilities of transferring specific processes in branches to self-service systems, as well as providing information on more efficient and more profitable branch workflows prior to implementation.

Our Services business with banks enjoyed strong growth, in particular in Germany/Europe and Asia. The further expansion of our own resources as well as services provided by our partners, have allowed us to improve the quality of our portfolio. Furthermore, the performance of close-to-the-product services has been increased thanks to process improvements.

We have gradually expanded our network of global service partners in order to ensure across-the-board support for our customers in the banking sector. For example, we have substantially reinforced our service organization in the U.S., and are now present in a large number of states.

Our outsourcing business continued to gain importance during the year under review, with newly launched or further developed outsourcing projects. We are benefiting from our experience in self-service, service, and IT operation management. A new model introduced in Germany was the formation of Wincor Nixdorf Portavis GmbH, which commenced its operations at the start of the fiscal year. Our two partners Hamburger Sparkasse and Sparkasse Bremen have outsourced all of their decentralized IT systems, including media technology and networks, to this joint venture, whose operations are managed by Wincor Nixdorf.