Acquisitions and New Companies.

Wincor Nixdorf continues its strategic expansion. In Germany, we strengthened our position as a specialized provider of IT services for retail banks in the field of Outsourcing (Glossary) . With effect of January 1, 2008, we acquired a majority interest (51%) in and operational control of Prosystems IT GmbH in Bonn. At the end of the fiscal year, as a means of widening our portfolio of services to retail banks, we acquired 51% of the shares in Bankberatung Organisations- und IT-Beratung für Banken AG in Wedemark (a region of Hanover), a consultancy firm in the field of organization and solutions (Glossary) .

Outside Germany, we set up new subsidiaries: in Norway, where together with a partner (Wincor Nixdorf owns 50% of the shares), we founded a joint venture company to compete in the Banking Services industry, and in India, where the aim is to expand our sales operations.

All changes affecting the composition of the consolidated Group are explained in the Notes to the Group Financial Statements under the heading “Consolidation Group.”

Capital Expenditures.

In the year under review, Wincor Nixdorf again invested heavily in capital projects to increase capacity, streamline Company processes (and therefore boost productivity), promote innovation and enhance the quality of our hardware, software and services (Glossary) .

In fiscal 2007/2008, we invested €72 million (2006/2007: €61 million) primarily in software and data processing systems, specialist tools and production facilities, other fixed assets, office equipment and reworkable service parts.

We spent €19 million alone (2006/2007: €16 million) on the expansion of our Outsourcing business in Germany.

Capital Investment History.                                                                                                €m