Capital Expenditure Remains High.
Wincor Nixdorf intends to maintain investment in fiscal 2009/2010 at the same level as in the previous year, although we may trim spending in the absence of any lasting stabilization of the economy, or in the event of the situation deteriorating even further.
Seizing Opportunities for Targeted Acquisitions.
With regard to potential external growth, we continuously review the viability of making acquisitions to strengthen our market position and optimize our development and business areas, e.g., in order to expand our software development activities or in the field of Professional Services (Glossary) . We will pursue this business policy and make use of suitable opportunities as they arise.
Financial Position and Assets Remain Stable.
Overall, we expect finance costs to remain at the same level as the previous year.
We intend to maintain a low level of net debt (Glossary) . Secured terms are negotiated for any loans we obtain, to ensure that we are adequately protected and have sufficient flexibility, if required. Under the terms of the revolving facility, Wincor Nixdorf Group was granted a credit line of €350 million by a consortium of banks for the period up to the beginning of August 2012. Borrowings are subject to interest based on the EURIBOR plus a margin. The entire credit line is still available until the expiry of the agreement without an obligation to make principal repayments before that time.
Thanks to this financing structure, we can obtain extra cash as needed at short notice for both our operating business and for acquisitions.
Risk Situation Unchanged.
Essentially, we view the identifiable signs of improvement in the economy at the start of the new fiscal year in a much more positive light than the previous year, although as yet they are not firm enough to offer a stable outlook for growth. In our business with retail banks and retailers, we continue to face uncertainties and risks from potential setbacks in the wider economy. At the same time, however, there are still opportunities to be grasped from continued pressure on sales and the associated drive for streamlining in both the industries in which Wincor Nixdorf specializes. We increasingly rely on our well-established opportunity and risk management for the purpose of adequately determining and underpinning the approach to be taken in a business environment that generally remains nebulous.
