Wincor Nixdorf is committed to improving its cost structures on an ongoing basis. Gross margin on net sales before profit charges arising from the
carve-out (Glossary)  edged up slightly to 27.6%, as a result of the economies of scale mentioned above (2005/2006: 27.5%). The Group-wide Prolmprove program provides the foundation for efficient cost management. Selling, general and administration expenses, including other operating income and expenses, amounted to €308 million (2005/2006: €287 million). Calculated in relation to net sales, selling, general and administration expenses were reined back by 0.3 percentage points to 14.4% in the fiscal year under review (2005/2006: 14.7%).

Research and development costs rose by €10 million to €97 million (2005/2006: €87 million) and were thus up 11% year on year. The ratio of R&D expenses to net sales remained unchanged at 4.5%.