Financial Position.

After funds allocated to the Contractual Trust Arrangement (CTA), leading to a cash outflow of €30 million (2014/2015: €0 million), cash flow from operating activities in fiscal 2015/2016 was up €8 million on the prior-year figure to reach €105 million (2014/2015: €97 million).

Cash flow.  

 

€ million

 

2015/2016

2014/2015

EBITDA

206

76

Cash flow from operating activities

105

97

Cash flow from investing activities

–41

–55

Cash flow from financing activities

65

–72

Change in liquidity

129

–30

Change in cash and cash equivalents from exchange rate movements

–1

0

Cash and cash equivalents at beginning of period

–54

–24

Cash and cash equivalents at end of period

74

–54

Cash flow from operating activities totaled €105 million in the period under review (2014/2015: €97 million). In this context, EBITDA after non-recurring items and transaction expenses in connection with the Diebold Inc. business combination, as the basis for operating cash flow calculations, was substantially higher year on year at €206 million (2014/2015: €76 million). Income tax payments reduced cash by €37 million (2014/2015: €36 million). The reduction in working capital, adjusted for the effects of acquisitions, resulted in a cash inflow of €11 million (2014/2015: €46 million). The intra-Group elimination of gains/losses from the disposal of formerly consolidated companies in China led to a reduction of €14 million in operating cash flow (2014/2015: €0 million). Other non-cash items and the change in accruals produced a cash outflow of €59 million (2014/2015: cash inflow of €35 million); one of the main factors here was actuarial losses of €36 million from the valuation of pension accruals (2014/2015: cash outflow of €6 million).

At €41 million, net cash used in investing activities over the reporting period was down by a substantial margin (2014/2015: €55 million). This decline is primarily attributable to net cash inflows of €16 million (after deducting cash, cash equivalents, and bank liabilities sold) from the disposal of the Group's Chinese companies (2014/2015: €0 million). As in the previous fiscal year, the main focus of Wincor Nixdorf AG's investing activities was on other fixed assets and office equipment and on reworkable service parts.

Additionally, Wincor Nixdorf expanded its software-related services business during the current fiscal year by acquiring 51% of the interests in Projective NV, Belgium, a company specializing in program and project management within the financial services sector. Prior to this, Wincor Nixdorf had already expanded its profitable IT Services business by acquiring the Dutch operations of Brink's. As of December 1, 2015, Wincor Nixdorf acquired the interests held by third parties in the joint venture Winservice AS (Oslo). Additionally, two service station support companies were acquired, with registered offices in Cologne (Germany) and Kraków (Poland). These companies are responsible, among other things, for operations. In addition, they update the software used to process payment transactions at the service stations throughout Europe.

In this context, the pro rata acquisition of Projective NV, the purchase of the business operations of Brink's, the acquisition of the third-party interests in Winservice AS, the first-time consolidation of CI Tech Sensors AG in Switzerland, and the takeover of the two service station support companies produced a cash outflow of €18 million in total. This also involved taking over assets and liabilities. At the date of acquisition, these items included net cash of €15 million. The amounts paid for the acquisition have been netted off in the financial statements against the above-mentioned cash and current financial liabilities.

The net cash inflow from financing activities totaled €65 million (2014/2015: cash outflow of €71 million).

Two investment firms acquired non-controlling stakes of around 13% in AEVI International GmbH, a subsidiary of Wincor Nixdorf, leading to a net cash inflow of €29 million. Cash expenses attributable to this transaction were offset against the payment received. This external equity holding in AEVI International GmbH is intended to more effectively leverage the company's potential in the market for cashless payments.

In addition, as a related company, Diebold S.A.R.L. made around €59 million available to Wincor Nixdorf for financing purposes in the form of a revolving credit line. Turning to cash outflows, the Company repaid financial liabilities of €20 million (2014/2015: €15 million). This amount is attributable in full to a scheduled partial repayment of the loan obtained in fiscal 2013/2014 from the European Investment Bank in Luxembourg.

In contrast to the prior year, no dividend was paid to shareholders in the current financial year. For fiscal 2013/2014 the Company paid dividends totaling €52 million.

At €49 million, free cash flow (cash flow from operating activities less capital expenditure on intangible assets, property, plant and equipment, and reworkable service parts) was up by €8 million year on year (2014/2015: €41 million).

As a result of the above-mentioned changes in cash flow, net debt fell significantly in the period under review (Sept. 30, 2015: €140 million). In this context, the Company recorded a cash surplus of €7 million (including amounts drawn from the revolving credit line, this corresponds to net debt of €51 million) as of September 30, 2016.