After a substantial downturn in the previous year, the Hardware business achieved a small increase in net sales in fiscal 2010/2011, although overall it remained below our original estimates at the start of the year. By contrast, the Software/Services business continued to perform well and delivered stronger growth in revenue.
Revenue from the Hardware business rose by 2% to €1,159 million (2009/2010: €1,140 million). The Hardware business accounted for 50% of the Group’s total net sales (2009/2010: 51%). Although results in the retail banking segment fell slightly short of the level recorded in the previous year, there was a marked increase in revenue from electronic point-of-sale (EPOS) systems for the retail industry. However, sales of high-end systems remained below expectations in both segments (see). The ongoing global rollout of CINEO, our innovative system family, continued throughout the reporting year, with the result that CINEO was still unable to contribute significantly to Hardware sales (see ).
Net sales in the Software/Services business ended the year 6% higher at €1,169 million (2009/2010: €1,099 million). Accordingly, the share of total Group net sales generated by Software/Services rose to 50% (2009/2010: 49%).
The Software business was boosted by the continued development of different components in our Retail Banking and Retail Suites, as well as their equivalents for the postal and service station business. In the year under review, we also achieved positive results from the consistent expansion of our software-related services, such as Software Adaptation and Integration (Professional Services (Glossary) ).
As in previous years, there was renewed growth in Services, predominantly as a result of increased revenue from the Product Related Services (Glossary) business, which continues to account for the largest part of the Services business (see ). Furthermore, the contracts we sign with our customers mostly run over several years and therefore deliver a steady source of revenue. We also widened our portfolio, helping us to strengthen our customer base.
By expanding our network of partners, we were also able to offer our services in those countries where we do not have our own service organization.
Managed Services (Glossary) delivered another very good performance, with significant increases in revenue from hardware-independent projects in areas such as cash management and cashless transaction processing. Increasingly, we are now able to offer our full range of Managed Services in Asia.
In Outsourcing, we primarily maintained existing partnerships in Germany, the Netherlands, and the U.K., in some cases with the addition of new services.
Net Sales Split: Hardware and Software/Services.€m