Retail Segment

Net sales in the Retail segment rose by a very encouraging 8% to €801million (2009/2010: €742 million). EBITA was up 17% at €42 million (2009/2010: €36 million). Accordingly, the EBITA margin went up by 0.3 percentage points to 5.2% (2009/2010: 4.9%).

Net Sales and EBITA History: Retail.€m

Net Sales and EBITA History: Retail (bar chart)

The list below summarizes the main developments in the Retail segment (including our service station business) during the year under review.

Electronic Point of Sale (EPOS).

The main focus of our development work on EPOS systems was on technology optimization, e.g., new processors and new operating systems, partly in order to enhance performance. Above all, we achieved an improvement in the total cost of ownership and resource use of our systems.

Automated Checkout.

We extended the scope of our automated checkout portfolio to include the “360 Scan Portal” (see Our Solutions Portfolio).

Retail Cash Management.

During the year under review, there was particular interest in cash office automation, and we began a number of successful projects on behalf of international retailers. With a view to exploiting the maximum potential for optimization, many retailers also aim to take a further step by automating cash handling processes in the front office.

Software for the Retail Industry.

We added a number of new applications to our software portfolio in the enterprise area, i.e., at head-office level. One of our new solutions allows retailers to plan and manage the deployment of personnel.

Professional Services.

In this area, we focused predominantly on the expansion of our consulting services (see Our Solutions Portfolio).

Reverse Vending.

Development of the future modular generation of products was close to completion at the end of the reporting period, and we plan to launch them in the next fiscal year. We also presented a new software component with added-value functions such as coupon issue, e.g., in order to strengthen customer loyalty.

Service Stations.

We extended our service station branch management portfolio to include a new Forecourt Controller component. Wincor Nixdorf develops its own, fully integrated solution in an area that we previously covered with partners. The interface controls and monitors forecourt devices such as the car wash and fuel pumps.

Regional Performance.

The Retail business in Germany performed well, although results were below those of the previous year, which had been boosted by a particularly large order in the service station business.

Europe (excluding Germany) made a substantial contribution to growth in the Retail segment. This was mainly due to strong business in the area of checkout systems and automated checkout solutions in France, the U.K., Turkey, and Eastern Europe.

Retail sales in the Asia/Pacific/Africa region also increased, especially in key markets such as China and India, thus providing a firmer basis for the future.

There was an encouraging level of growth in the Americas, albeit from a low base. Here, too, the main driver was our checkout systems business.

Performance by Business Stream.

Of Wincor Nixdorf’s business streams, it was Hardware that made the greatest contribution to sales growth in the Retail segment.

During the year under review, deliveries of EPOS systems rose by a considerably higher margin than the market as a whole. Although these systems play a fundamental role in our retail operations, tough competition in this market puts tremendous pressure on prices and margins. In this context, our BEETLE platform strategy and ongoing product developments proved all the more valuable. As evidence that our long-term strategy is paying off, we are pleased to note that in 2010 we captured the number two spot worldwide with regard to the volume of deliveries (Source: RBR survey). By contrast, our high-end business was unable to match the level of the previous year.

During the year under review, Wincor Nixdorf secured orders for several international projects in the kiosk area, and there was particular interest in a new terminal based on the CINEO family. As part of another international project in the area of system gastronomy, we began to rollout a customized terminal that greatly speeds up the order process for end-customers.

Wincor Nixdorf also strengthened its international profile in the reverse vending business. We maintained a good market position in both Germany and Europe, although overall volumes remained below our expectations. We expect to drive future growth in part by breaking into markets in several countries without statutory reverse vending schemes and by exploiting the anticipated potential for sales in Germany and other North European countries.

The Software/Services business delivered renewed growth.

Thanks to a further improvement in our Software business during the reporting year, we were able to strengthen our position as one of the world’s leading software providers for the retail industry. Sales here were boosted primarily by software projects with major international retailers, e.g., in Germany, Denmark, and Russia. We were particularly successful in the fashion sector but also managed to break into new areas, as shown by our first project for a German drinks retailer. Overall, we are pleased with the level of growth we achieved with consulting and integration services.

Wincor Nixdorf’s Services business also grew, led by Product Related Services (Glossary for newly supplied EPOS and reverse vending systems as well as for our service station business, where we now provide solutions to enhance system availability.

Managed Services (Glossary for checkout and self-service systems also performed well, thanks mainly to New Store Opening projects in several Asian countries and to strong demand in this region for Managed Total Store solutions.

In Asia, Russia, and elsewhere, we attracted new customers with our tried-and-tested service concepts for international retail chains wishing to expand their global branch network and provided IT infrastructure support for the opening of new branches. We also expanded our service in hardware-independent areas. In Italy, for example, we have now taken over the electronic processing of meal vouchers including complete settlement of cashless transactions.

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