Depending on legal, economic and tax environments of the country in question, employees of the Wincor Nixdorf Group have various retirement planning systems available to them. The greater part of them classify as defined benefit plan.

The pension plan run by WINCOR NIXDORF International GmbH, Paderborn, is based upon direct performance-related commitments. Differentiation must be made between pension commitments to “tariff” employees and those to “non-tariff” employees. For tariff employees, commitments depend on length of service and tariff grade, and also partly on length of service and salary when the pension is put into payment. The value of pension commitments is generally reviewed once every three years. For non-tariff employees there are fixed-sum commitments related to age 60. These take the form of varying individual pension commitments set out and agreed on the basis of individual contracts. The amounts are related to income and progression of income. Wincor Nixdorf converted parts of the employer’s pension scheme arrangements in the third quarter of 2006 from pension payments to a one-time pay-off or payment in several installments. This alteration has resulted in a change to the pension obligations valuation in fiscal 2005/2006.

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 (€14,562k), equity interest in a management company (€25k), trade receivables (€30,069k) as well as cash (€56,000k). The plan assets have been deducted from the corresponding pension obligations. In September 2006, additional €28,275k has been allocated to the pension fund by means of cash. As of September 30, 2006, the pension plan was over funded by €1,851k. The amount is presented under other non-current assets.

With regard to Wincor Nixdorf entities, the underlying actuarial assumptions (weighted average) are as follows:

In addition, life expectancy assumptions have been considered. The 2005G Heubeck Tables have been used for Germany.

In doing this, actuarial gains and losses are recorded immediately in the relevant year’s annual net profit in the functional cost headings. Pension expenses consist of current service costs and interest costs. Current service costs are accounted for within functional cost headings. Interest costs related to the measurement of the pension plan of WINCOR NIXDORF International GmbH have been presented in finance costs until June 30, 2006. Due to the creation of plan assets, interest costs for the pension plan of WINCOR NIXDORF International GmbH are shown in the functional cost headings since July 1, 2006 together with the expected return on plan assets. Interest costs for the other pension plans in Germany are recorded in finance costs.

The distribution of the total costs of Wincor Nixdorf is made up as follows:

The present value of pension accruals of Wincor Nixdorf is as follows:

Expected return on plan assets is determined based on a weighted average of 4.7% (previous year: 3.6%) and shown within the functional cost headings (previous year: finance income). The actual return on plan assets was €2,652k (previous year: €824k).

Subsidiaries in Belgium, the Netherlands and Sweden have installed so-called multi-employer plans. According to IAS 19, these plans have to be treated as defined benefit plans. Since the required information of the plans is not available, the plans are treated as defined contribution plans. The personnel expenses of the fiscal year include expenses for defined contribution plans in the amount of €21,082k (previous year: €17,353k).