Accruals in respect of employees’ and pensioners’ pension entitlements are created using actuarial principles and biometric data corresponding to the Projected Unit Credit method. This method takes account not only of known pensions and known earned future pension entitlements at the balance sheet date, but also of expected future increases in pensions and salaries having estimated the relevant influencing factors.

According to IAS 19.78, the discount rate used to discount pension obligations has to be determined at each valuation date. The discount rate is based on the market yields on high- quality corporate bonds. The terms of the corporate bonds has to be consistent with the estimated terms of the obligations.

Actuarial gains and losses and all other components of pension expenses are recorded immediately in the relevant year’s profit for the period in the functional cost headings. Interest costs are also completely presented in the functional cost headings.

In June 2006, Wincor Nixdorf created plan assets according to IAS 19 as part of a Contractual Trust Arrangement (“CTA”), by transferring assets to a registered association (Wincor Nixdorf Pension Trust e. V.) in order to fund pension obligations to employees. Plan assets are netted with directly related pension obligations.