The substantial pension commitments in Germany are based upon direct performance-related commitments. Every entitled employee receives, depending on individual pay-scale grouping, contractual classification or income level, different yearly contributions. The contribution is multiplied by an age factor appropriate to the current pension scheme and credited to the individual retirement account of the employee. The retirement accounts may be used up at retirement by either a one-time pay-off or payments of ten years’ installments at maximum.

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

Facing the current developments on the financial market, Wincor Nixdorf determined the discount rate at the valuation date of September 30, 2008, on the basis of market yields on high-quality corporate bonds, excluding any bonds of companies of the financial sector. Due to the loss of confidence in bonds of companies of the financial sector, these bonds are only placed on the market with high spreads. Therefore, in our opinion, these bonds may not be classified as high-quality corporate bonds according to IAS 19.78.

An increase or decrease of the assumed interest rate (weighted average) by 0.5 percentage points would have the following impact:

In addition, life expectancy assumptions have been taken into account. For Germany, the 2005G Heubeck Tables were used. Pension valuation is based on Projected Unit Credit method.