Banking Segment Performance.

Significant upturn in EBITA with slight dip in net sales.

Net sales for the Banking segment, which also includes business with postal companies, totaled €1,543 million in the year under review (2014/2015: €1,582 million). This corresponds to a decline of 2%. By contrast, EBITA rose to €105 million in fiscal 2015/2016 (2014/2015: €3 million). This figure includes transaction expenses of €34 million attributable to the business combination with Diebold Inc. As a result, the EBITA margin rose to 6.8% (2014/2015: 0.2%). EBITA after non-recurring items associated with the Delta program, excluding transaction expenses, stood at €139 million (2014/2015: €3 million). Correspondingly, the EBITA margin after non-recurring items increased to 9.0% (2014/2015: 0.2%). Banking segment EBITA before non-recurring items totaled €140 million (2014/2015: €65 million). Thus, the EBITA margin before non-recurring items rose to 9.1% (2014/2015: 4.1%).

Net Sales and EBITA History: Banking.

€ million

Net Sales and EBITA History: Banking (bar chart) Net Sales and EBITA History: Banking (bar chart)

Segment performance by business stream.

Hardware business was driven mainly by forward momentum within Germany and other industrialized countries in Europe, while unfavorable trends in the emerging markets exerted downward pressure on net sales as a whole. In the fiscal year just ended, the Company managed to increase the proportion of higher-quality, multifunctional systems.

The Banking segment saw a decline in the overall volume of business associated with Software/Services. Business relating to Software and Professional Services was down on the prior-year figure; net sales from Product-related Services contracted slightly, primarily as service agreements in North America considered less profitable for Wincor Nixdorf were transferred to third parties as part of the Delta program.

Segment performance by region.

In Germany net sales were up marginally on the previous year's figure.

We also recorded slight growth in net sales in Europe (excluding Germany), although there was significant divergence between the respective countries as regards business performance.

Our activities within the Banking markets of Asia/Pacific/Africa contracted significantly in the period under review. Business within the key market of China was adversely affected by restrictions to market entry; this prompted a marked downturn in net sales. Net sales generated in the Middle East and Africa were up substantially on the prior-year figure.

In the region encompassing the Americas net sales were on a par with the figure recorded in the previous fiscal year. In North America, we completed a major rollout of systems featuring cash/check deposit technology in the period under review. Additionally, we were successful in continuing extensive Software and Professional Services projects designed to help major U.S. banks in their efforts to drive forward branch transformation and digitalization. Business with Product-related Services declined in North America, as we discontinued some service agreements as part of the Delta program. Net sales in the crisis-stricken markets of Latin America were down substantially.