Expected Business Performance for the Wincor Nixdorf Group in 2016/2017.
In the current financial year 2016/2017 we expect to generate net sales slightly in excess of the figure recorded in fiscal 2015/2016. Net sales should be up on the prior-year figure in the Banking and Retail segments. Looking at our business streams, we anticipate that net sales relating to Hardware will be slightly lower, particularly in the Retail segment. This is to be seen against the backdrop of buoyant sales in the preceding year. The Software/Services business, by contrast, is expected to produce growth in both segments.
Wincor Nixdorf is confident that it will continue to reap the rewards of its Delta restructuring program over the course of the current 2016/2017 financial year (please also refer to the "Objectives and Strategy" section). The program was implemented with great success in fiscal years 2014/2015 and 2015/2016 and is to make a positive contribution to earnings of €120 million per annum in total up to fiscal 2017/2018.
Our Hardware business will continue to be exposed to price-related pressures around the globe, coinciding with stagnation with regard to the Group's installed base in the core markets of Europe. The Software/Services business stream is expected to generate growth from Software and Professional Services, fueled by the trend toward digitalization and omnichannel strategies. This will be complemented by forward momentum in the area of Services, with a more pronounced structural focus on Managed Services and Outsourcing (with a particular emphasis on the operation of ATM networks and the management of store life cycles).
In terms of regional performance, we expect to achieve growth in Germany and Europe (excluding Germany) in fiscal 2016/2017, whereas the Americas and Asia/Pacific/Africa (here particularly as a result of the joint venture and the associated decline in revenue streams from China) are likely to see a downturn in net sales.
Growth within the Group as a whole will also be underpinned by our activities relating to cashless and mobile payment solutions. This business is being managed by AEVI, which is expected to remain on track with double-digit percentage growth.
Research and development.
In order to strengthen our market position, we are planning a modest year-on-year increase in R&D spending. With regard to the distribution of capital expenditure on R&D, we intend to maintain the pattern established in recent years and allocate a steadily increasing proportion to software development. The larger proportion of investment spending will be directed at the Banking segment. The main focus of this investment will be on the integration of omni-channel and mobile technology. We are also planning additional investment in our (AEVI) cashless and mobile payment operations. With regard to Hardware development, we will focus on refinements to our core modules, e.g., in the area of cash recycling. Other R&D spending will be targeted at developments to facilitate system integration, reduce costs across the entire system life cycle, and ease the task of maintenance.